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5 Easy Ways to Plan Your Spending and Increase Your Saving

One easy way in which you can make better use of your money is to write down what you wish to do with it. If you write them down they will always appear more plausible and you will feel that there is always a good chance that you can achieve them. We often see that our daily expenses come in the way of our saving. A spending plan is a good way to ensure that our life’s financial goals are not messed up by our expenditure. A spending map or plan is different from a traditional budget in the sense that it is not as strict as the earlier. It is something that helps us assume greater control of our finances in the future. A spending map can definitely help us reach our goals.

Step 1: Decide Your Outcome, Reduce Cost, Increase Saving or Investment

The first thing that you need to do in order to save money is to understand where your money is going. It helps you get a control on your financial situation and also helps you achieve your goals with the financial resources at your disposal. There are a few things that need to be done if you want to understand where your money is heading. The first thing is to assess your financial habits. For starters, you can list down every area where you may have spent money in the last month. You can start with areas that are common expenses for all such as rent and utilities, insurance, minor purchases such as snacks and coffee, and groceries.

Step 2: What is Your Income (Monthly or Yearly)?

There are several components of your income – more than you may know or care to imagine. The first part of your income is the salary that remains after all the applicable taxes have been deducted. If you have other earning member/s in your home then this rule applies to them as well. Together you can calculate and arrive at a cumulative figure. The bonus and overtime payment that you receive from time to time or at definite intervals in a year also constitute your income. In case you earn some dividend on shares or any form of interest on your savings it is considered your earning as well.

Step 3: List Out Expenses (Monthly or Yearly)

The most important expense for you would be the various savings and investment that you are making in order to secure your financial future as well as that of the others important to you. The second important area of expense is housing. You could be paying mortgage or shelling out rent for the same. Electricity is a critical area of expense as well and one should try and use it as judiciously as possible. Then there are expenses such as heating oil and gas. Water is also an important area of expense. Telephones come with associated costs such as monthly rentals, internet connection, and costs incurred in long distance calls that inevitably are more expensive.

Step 4: Compare Income and Expenses.

Comparison of income and expenses is a very important part of any exercise aimed at saving money. You can do this by writing down your aggregate income in a month and then taking into account the total money that you are spending in a month. Your income should always be more than what you are spending.

Step 5: Set Priorities and Make Changes to Your Spending and Savings

If you are able to save money at the end of a month then it is a fantastic situation to be in. It shows that you have a balanced income. This means that you have the money you need to achieve your future goals. However, in case it is the other way round then you need to increase your income or reduce your expenses or, if possible, do both.


The basic thing is that you should always be careful about the condition that your money is in. You should earn as much as is possible for you and spend as little as you can. This will allow you to create a fund that will come in handy at various stages of your life.


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