Write down your monthly income. Also write down your monthly expenses against each classification of expenses. Carefully go through all the expenses at least on a fortnightly basis and decide where, how much and how can you reduce the expenses in the forthcoming period(s). You will definitely get the right answers to save. Write down the new reduced limit of expenses against that expense classifications. You may get pleasant surprises.
An example of format is given below:
Income (Monthly)
- Combined income of family after taxes
Fixed expenses
- House rent/home loan
- Children's fees
- Automobile (car) loan
- Any other loan
- Insurance premiums
Household expenses
- Grocery
- Transportation (gas, repairs etc)
- House help (servant, gardner, cook etc)
- Phones- landlines
- Phones- mobile
- Electricity
- Water
- Gas
- TV cable
- Internet
- Medical
Lifestyle expenses
- Clothing
- Entertainment
- Eating out
- Gymnasium/club membership
- Personal care
- Books
- Newspapers/magazines
- Travel
- Holiday
Other miscellaneous expenses
- Household gadgets
- White goods
- Festivals
- Gifts
- Socializing
- Others
Against each one of these classifications, write the actual expenses and then, the reduced projected expenses. You will get an idea of your savings per month by this method.
Also refer: http://home-tips-tricks.blogspot.com/
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