Saving money is more than just lowering your bills and clipping coupons – it’s about spending less than you make. The best way to ensure that you are in fact spending less than you make is to create a budget and stick to it. Many people don’t know where to begin, but billcutterz.com is here to save the day.

Part One: Fixed Essentials – This category is all of the stuff you need that is fixed every month you’re your mortgage/rent payment, car payments, insurance, etc.

Part Two: Variable Essentials – This category is for all of the important expenses that vary from month to month, including electricity, gas, groceries, etc.

Part There: Fixed Nonessentials – All things that are fixed, but not as important, such as cable/satellite TV, cell phone, etc.

Part Four: Variable Nonessentials – Expenses that are luxuries, but vary by month, such as eating out, entertainment, etc.

Once you’ve established these four parts of your budget, start filling in expenses. If you have bank statements or check registers for the past year, start looking for expenses that come up periodically, such as oil changes, taxes, car repairs, back to school clothes, etc., and work it into your budget. This will help you figure out how best to prepare for them in the future.

The next step is to match your monthly budget to your monthly income and see where you are. If you come out ahead, you can begin allocating any extra income into your savings account, emergency fund or pay off any debt. If you come out behind, you should take a look at nonessentials and begin cutting them back.