By systematically working through all of your bills and expenses it is actually possible to give yourself up to a 25% raise. People "waste" so much money through poor personal money management. This isn’t achieved by "cutting out espressos and cappuccinos" but it’s the methodical and careful working through of all bills and financial products to ensure you have the best deal on everything.

In reality, it will take many hours of work to realise a substantial saving but it is definitely worth bearing with it as the rewards are rich. You will see a difference if you work hard and put the effort into the research necessary to make the difference. You could literary save yourself $1,000's. If you think that you don’t have time – then make time. This is extremely important.

Can Someone Do This For Me?

If you are asking this question then you have missed the whole point about money saving. The process not only saves you cash but educates you on how companies will take your cash through apathy, ignorance and inertia. Even if this wasn’t the case, there aren’t many money saving advisers around. The service doesn’t exist and if it did, their costs would eat up much of the gain. There is only one option – do the work yourself.

Are You Spending More Than You Earn?

Only you know this answer, and without this you can’t work out how aggressive the course of action that you need to take to save money. Smart money saving is about cutting your bills without cutting back and this involves changes your finance and not your lifestyle. But, if you are still spending beyond your means, you have a problem. Cutting back and lifestyle changes may be necessary as well and as the basic money saving changes.

Fortunately, for those that are actually spending less than they earn only need to concern themselves on freeing up wasted cash, so you keep more in your pockets and not in that of the big companies. This is why it’s important to know if you are spending more than you earn.

How Do You Know You Are Spending More Than You Earn?

Do you know what your debts are from? Are your debts from a car purchase or house renovation? If you don’t know, or can’t account where your debts are from then you are a slippery slope. If you are consistently spending more than you earn and no further investigation is needed. You need to take the advice below and identify the difference between your income and outgoings.

Or maybe you are not sure where your finances stand? If so, you need to add it all up and do the calculations. Get copies of your bank statements and quite simply, add up your income and add up your expenditure, then work out what is left.

Income

This is your income from employment, income from savings, pension, financial gifts from family or friends and any other income you receive.

Expenditure

Now add up your expenditure. Add up things like your mortgage or rent, bank loans, insurances (life, house etc..), overdraft costs, credit card costs, eating, drinking, smoking, car, transport and travel costs, clothes, internet and phone costs etc….

Now, simply take away you total expenditure away from your total income. This will indicate immediately if you are spending more than you earn.

How To Actually Save Money

It is simple to save money, but it does need work and research on your part. Quite simply, if you can get the same product by paying less, then do so. Look at all of your expenditure, go through each item one by one and find an alternative product, for less money. Think about it…..cheaper home/car insurance, cheaper childcare, cheaper nappies, cheaper clothes, cheaper food, cheaper phone, cell phone and broadband, etc… It’s possible to save substantial cash by choosing the companies that give you the most discounts, it just takes a little time to research and the rewards will be worth it. Using the internet is one of the best places to start your campaign as there are numerous financial comparison websites that can aid you in your quest to find the cheapest possible products.