Is there really a secret to saving money? It may seem as though it is mystery how your bank account ends up empty every month but there is no mystery to it. While it may be no secret there are three important tips you can follow to help you put more money in your pocket. The challenge is to follow the tips in order to be successful at saving money. The rest is up to you.

1. Create a Budget

You need to know where your money is going. Once you have established where you spend your money you will be able to find places to make cuts. The first thing to do is figure out how much is being spent on housing, utilities, groceries, debt, and entertainment. Once you know where the money is going you will be able to set limits for problem areas. This is the money that you will apply to secret #2.

2. Pay Yourself First

This is a huge secret, pay yourself first. Yes, before you dole out money for bills as soon as your paycheck hits your account; deposit a specified amount into savings. It doesn’t matter how small the amount is, at least you are saving.

Even better , create an automatic savings plan that will automatically deposit money into your savings account before you even have a chance to spend it. This can be done right through your employer’s direct deposit or with a recurring transfer with your bank.

3. Spend Less Than You Earn

If you don’t learn to obey this rule you will never be able to save money. You simply have to spend less money than you earn and there’s no way around that. If you are spending more than you earn you are borrowing money and thus putting yourself into debt.