Tips to cut spending and save money

As I wrote last month, if your savings can not cover the difference between your retirement expenses and your retirement income, you need to cut your living expenses and aggressively save. 
First, make sure you have prepared a monthly budget:

1. “Write” your budget down with pen and paper, on the computer or using an online budgeting tool. 
   
2. Track all actual spending for the next month. At month-end, compare actual versus budgeted spending. Try to cut out wasteful spending. Update your budget for next month. 
   
3. Save $1,000 in an emergency fund for the unexpected. 
   
4. List all your debt. Strive to pay off all debt besides your home mortgage, first paying off the debt with the highest interest rate. 
   
5. Build up your emergency fund to cover between 3-6 months of living expenses. 
   

Now, let’s focus on specific tips to spend less and save more before and during your retirement years:

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