I'm sure you've read articles about "10 Steps to a Better Money Life," or something like that. I know I have over the years. I was always bummed when they started with "spend less than you make" without explaining how. I thought to myself at that time that if I could do that already, I wouldn't be reading the article.

The tips and tricks I am about to share aren't anything new, but perhaps I've got them arranged in a way or said them in a fashion that will spark you to incorporate one into your money life. That's my suggestion: look for the one thing that you can use in your money life tomorrow.

Housing Costs

The cost of housing eats up the majority of your take home income and can make your financial life a struggle from the get-go.

One rule of thumb is that your housing cost should be no more than 35% of your take-home pay. If you're renting, that is just your rent divided by your take-home pay. If you own your home, it is your mortgage payment(s), 1/12 of your annual property taxes, 1/12 of your annual homeowners insurance, and your homeowners' dues (if applicable). All of that is what makes up your housing cost and the total would be divided by your monthly take-home amount.

Once you get past 35%, you're dedicating more and more of your take-home pay to just the four walls. In many metropolitan areas, housing costs can be 45% of take-home or more, causing that consumer to spend at least 10% more of their take-home pay and possibly eating up all of their disposable income.

Next step: What is your housing cost percentage? Is it a source of continuing struggle?

Planning Costs Less, Convenience Costs More

If you plan ahead for expenses, you are likely to choose the less expensive possibilities as you plan. If you haven't made a plan, you are likely to spend whatever it takes to get the job done.

A great example of this is meal planning. Buying a week's worth of meals planned in advance will save you money and time.

I had a client I'll call "Megan" with a large family. If she didn't plan a meal, she would shop on the way home or they would go out. Her grocery costs were high and she was shopping 22 out of 30 days a month. When they went out to eat as a family the bill was substantial.

She didn't believe that meal planning would make a difference, but here's what happened. She saved $175 in groceries that month, and $250 in eating out. Everyone knew what the meals were, and a side benefit was that her husband cooked one meal and her daughter another (the recipes were on the fridge).

Next step: Try meal planning for one month and see what happens...how much money do you save and how much time do you get back?

Previewing Your Month

If you plan out your month's expenses in advance, you can relax into your month without worry. This includes the bills and fixed expenses, purchases needed, groceries, gas, appointments, errands, and irregular or non-monthly expenses. The whole pie. You can make choices ahead of time if the income isn't going to stretch that far. You have the ability to review less expensive options or postpone something.

If you're not planning, there is a strong possibility that you will accidentally spend pre-allocated money, have to raid savings or put something on a credit card.

Next step: Sit down and plan June. See if you can capture the complete picture and compare it to your spending when June ends.

Little Amounts Matter

Have you ever said to yourself, "It's only five dollars...what could that matter? It wouldn't solve the problem." I have heard that more times that I can remember.

If you saved five dollars on lunch today, and then did that every other day for a month, you would have a $75 head start toward your vacation. If you did that for a year, you'd have $900 to buy that chair you've wanted.

I had a client that I'll call "Karen" who spent $5-20 a pay period on little items for the house. She said that the "awful" couch that she owned depressed her so much that she just had to have something colorful. For the last four years every time she passed that couch she was disgusted all over again.

I had her put that $20 in a savings account instead of buying things. After two months she had $80 in there. She was so inspired that she stopped spending on other things and put the money in the savings account instead. In six months she had the $1000 she needed to recover the couch that she so hated. So do little expenditures add up? You betcha.

Next step: What do you think you can't afford? Open a savings account specifically for that. When you choose not to spend money on something you'd normally buy, put that amount in the account. I'd love to hear about your results.

I Have Other Tips and Tricks for You

If you try to incorporate one of the above tips and you can't get it sparking or if these aren't the specific tips and tricks that you need, then call or email me. I've been helping people just like you amp up the effectiveness (and take stress out of) their financial lives for over 20 years. I can do it for you, too. Let's get going!