At the top of your spending plan, list the expenses you absolutely must pay. For example, you need a place to live, so you have to pay your mortgage or rent each month. Utilities such as heat and electricity, basic phone service and insurance are other non-negotiable expenses. Food is in there, too. Include any personal or student loans in this category as well.

Analyze Negotiable Expenses

Nonessential expenses are items you want but don’t necessarily need. Music or TV streaming services are a few examples. Restaurant meals and pricey vacations are others. If you need more cash to pay for essentials, areas like these are good places to look. Paring down nonessential expenses can make a big difference in your cash flow.

What can you live without? Take a hard look at where your money goes each month. Do you really need five streaming services? While the upgraded services may be nice, cutting back on some of them can free up money to pay down credit cards or add to your savings. By curbing your spending on extras, you’ll have more money for future goals, such as a new car, a first home and your retirement.