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One of the smartest ways to work with your money, is to come up with some goals.

Take some time, and figure out what you want to do in life. Come up with some short term goals (things you want to do within the next few months) and long term goals (things you want to do over the next few years).

Once you have some goals written down, you need to work out how much of your goals will need some kind of financing. If you short term goal is to read more books, and be nicer to others, then you don't need to work out finances for those!

But if your goal, is to upgrade your car, or take a night course, or buy something special, or something that requires money, then you need to work out how much you are going to need.

Once you have got yourself pumped and really excited about a short term goal you really want, you are going to be more motivated to watch your pennies!

You need to get into this motivated mood, to now create a budget with your money. Start with your daily spending, the spending that disappears quickly, such as coffees, muffins, vending machine treats, magazines, newspapers, lottery tickets, etc. Figure out how much of these you can save on.

Make a pot of coffee at home, and while it is brewing, make yourself a lunch and snacks to take to work with your coffee. Even if you save 5.00 per day, that is 25 dollars per week or 100.00 dollars per month, just from skipping a few coffee's! The more you save, the better.

Keep a notebook of your spending, and see where else you can cut back, or cut out, without restricting your lifestyle too much. You will be amazed how a dollar here and a dollar there adds up. Keep track of the savings over two week periods, and then have it transferred automatically from your checking account to a savings account, that is ear marked for your goal.

Watching your savings account grow, will keep you motivated to be smart with your money, as you get closer and closer to your goal. Once you have achieved that first goal, then it will become easier to set yourself up for another one, or those longer term goals.

Without some kind of motivation, it is very hard to cut back, or to watch your money.
So, go ahead, and make a list of "motivations" and get smart with your money.

Learn more about this author, Diane Palmer.
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