Tip #1: The Three Times Rule.
After purchasing an item, one should have three times that amount left in their account or on-hand (cash). If one will not have three times the amount of the price of that item, then one cannot afford it. The reason of the Three Times Rule is to make sure one has money for emergencies. For example, I go to the store and see a pair of shoes that are on sale. The shoes are $150 and regular price, they are $250. I check my account and see that I have $200. I remember that all bills are paid and this is my fun money. I buy the shoes and on my way home, something foes wrong with my car. To get my car fixed is going to cost $150. The car is needed to make sure that I get to and from work every day to continue making the money that I spend. Now, I have to find a way to take the shoes back to get the money I need to fix the car. Given that I would only have less than $50 left (don’t forget about the sales tax), that does not leave much wiggle room for me. The shoes are not a priority. My financial future is.
Now, everyone has a different budget. Necessities are not included in The Three Times Rule. The rule applies to unnecessary spending. Try to cut back on your unnecessary spending and put it towards your savings.