How to Start Saving Money – Where Does Your Money Go?

Where Does Your Money Go? How to Cut Expenses and Start Saving Money

It happens to everyone.  You work hard to earn money, but it doesn’t seem to be enough. Between bills, repairs, and those little emergencies, your paycheck seems to disappear faster than you’d like. Where is it going and how can I start saving money.

Life gets busy, and sometimes it feels easier to just swipe your card and move on. But the problem is, once you start relying on convenience spending, it becomes a routine—and suddenly, when a big expense hits (like a broken dishwasher or roof repair), you’re caught off guard.

The good news? You can take back control of your spending. Let’s look at some simple, practical steps to figure out where your money goes—and how to cut expenses so you can finally start saving money.

Let’s look at some tips for figuring out what’s happening.

Step 1: Income vs Expenses

Write Everything Down

Start by making a list of every expense—yes, every single one. From your rent or mortgage down to that $3 coffee. Don’t leave anything out. This the first step to saving money.

Be Honest With Your Spending

The more detailed and honest you are, the more accurate your picture will be. You might be surprised at what shows up when you list it all out.

Step 2: Break It All Apart

Note Where The Bill Goes

Record not only what you spend, but which card or account it comes from, and when during the month it’s due.

Organize by Pay Dates

You can start with pen and paper, then move to a spreadsheet or app once you’re comfortable. The important part is clarity.

Step 3: Face the Reality

Why a Spending List Is an Eye-Opener

Seeing your spending on paper can be a shock. I remember shaking my head in disbelief the first time I tried this.

Keep Updating the List

Treat your first list as a draft. As you remember more expenses, add them in and keep refining.

Step 4: Identify Your Biggest Expenses

Eating Out Adds Up

For me, dining out was my biggest money drain. Cutting back to just 2–3 meals out a month freed up cash quickly. This is an easy step to saving money.

Subscription Apps and Streaming Services

From Netflix to fitness apps, subscriptions sneak up on you. Cancel the ones you rarely use, and you’ll save $50–$100+ a month.

Step 5: Ask the Right Questions

Do You Really Need Multiple Apps?

Many shows or services overlap. Keep the ones you truly use and cut the rest.

Find Cheaper Alternatives

Could you share a subscription with family? Replace a paid app with a free one? Small swaps can make a big difference.

Step 6: Small Habits That Cost Big Money

The $5 Coffee Run

Daily coffee shop runs add up quickly. Try making coffee at home and bringing it with you—you’ll save money and time.

Grocery Delivery Fees

Delivery is convenient, but it comes with annual fees, service charges, and tips. Cutting back on grocery delivery saved me about $20 a week.

Final Thoughts: How Cutting Expenses Leads to Saving Money

Looking closely at your spending habits may feel uncomfortable at first, but it’s the first step toward financial freedom. By tracking, identifying, and adjusting your expenses, you’ll free up money for emergencies—and even start building real savings.

This is just the beginning of creating a budget and simplifying your financial life.   Check out this Simple Monthly Budget Planner on the Resources page.

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