How To Save Money & Spend It

Many of my friends ask me "How do you have so much money?"
Between student loan debt, rent, and other various bills and expenses I still manage to have enough to go on vacation, start a garden or new hobby, get my hair cut, and buy everyone Christmas and Birthday gifts every year.

It's not that I have a lot of money, it's that I manage it well. I have power in my spending.

I have a suggestion for you to try. This can give great control of your income and expenses.
Let's call it the A B C 's of money management.

A - is for Analyze: 

Time to save your receipts and take a good look at your transaction history on a per month basis. It's important to keep track of WHAT you are spending your money on. Every cent counts, this includes withdraws for cash purchases.

B - is for Budget:

Once you know what you are purchasing, it's time to organize it all and add up the monthly totals. There are several Budgeting apps available to make this process easy. 
I personally use Mvelopes.
You could also use Excel or a word program to keep track of your notes.

Separate all analyzed expenses into relevant categories:

Monthly
Student Loans - $1000
Rent - $600
Water Bill - $20
Electric Bill - $30
Phone Bill - $70
Clothing - $50
Groceries - $200
Entertainment - $60

Periodic
Eating Out -$15
Medical - $25
Dental - $25
Gifts - $40

If there is something you want to save for, be sure to include that in your budget so you can see how much can be put into that category each month.

Home Improvements - $45
Vacation - $100

Use your total monthly income to fund your budget, Your total income changes per month based on how many pay days you have.
Things that are required should always be the first thing you fund (Bills, Food, etc.)
What ever is left can go anywhere you'd like!

C - is for Control:

Now that you know what you are buying and where your extra money can go, you have more control over your purchases.

You may be surprised of how many unnecessary purchases you are actually making. You can update your categories so your funding is going towards more desirable spending goals.

A good example might be, every day you buy a cup of coffee for $5 that's around $150 per month that could go towards a vacation.

I'm not saying you should cut that daily cup of coffee, but weigh your options. Which is better to you, that coffee or a sunny beach in Fiji?

You will find that there are flexible areas in your budget (entertainment and hobbies) and not so flexible (bills, loans). 

It's nice to be able to confidently spend your money without worrying if you have enough.

Finally, stick with it! 
Make sure you continue your A, B, Cs and plan ahead. Everytime you use your money, keep your budget in mind. You'll thank yourself when you have extra $$$ to spend and your friends say "How do you have so much money?"

Never spend your money before you have earned it.

Thomas Jefferson