Tip Two: Consider setting aside 10% of your income for emergency savings and 5% for unexpected pleasures. These two savings should be budgeted into your monthly expenses. When this amount is automatically taken off of the top of your pay and set aside you will learn to live without it and it will create a financial cushion that will catch you when you really need it.
Tip Three: Determine what you really classify as an emergency and as an unexpected pleasure. Write down your definition of both of these terms and before you dig into your savings accounts read over your original definitions in order to determine if you have a valid reason for reaching your account.
Saving money is possible even on a tight budget. In today’s economy many people are learning to live with less. You will find that if you properly budget your monthly expenses that you will learn to food shop for less and clothes shop for less and that you will actually find money within your tight budget for savings.