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The Most Effective Ways To Get Out Of Debt and Save Money (Part 1)

 by: Michael Saunders

Establish a Budget and Stick to It: Most people can't tell you where their pay checks go each month. All they know is that they don't have enough money to make ends meet. That's like having a checking account, writing checks, and never balancing it. Don't leave the management of your money to chance like that. Establish a budget and stick to it. However, before you can establish a budget, you must first know how much money you are currently spending each month.

Understand that there are monthly expenditures that you may not be able to change immediately, for example: mortgage/rent and car note, and there are monthly expenditures that you can change relatively easily: food, clothing and utilities. Focus on the ones you can do something about right now, and implement a budget reduction plan.

With regard to the monthly expenditures you can change immediately, review the amount of money you are currently spending, and try to reduce that amount by 25% the first month. For example, if you are currently spending $300 a mo