For the past six months or so, Josh and I have been saving up for a down payment on a house. We’ve done okay but our progress could be better.

The thing is, I should be good at this. Conceptually, managing money is a lot like managing weight – it all boils down to basic math.

CALORIES IN > CALORIES OUT = WEIGHT GAIN 

SPENDING > EARNING = DEBT

CALORIES OUT > CALORIES IN = WEIGHT LOSS       

EARNING > SPENDING = SAVINGS

Simple, yes, but unless you actually keep track of what you’re earning and spending (or eating and burning, as the case may be), chances are, you’re not really getting any closer to your goal. Here are my tips for saving money, all of which can be applied to losing weight: 

1. Keep track of everything - when it comes to weight loss, the one tip you’ll always hear is to keep a daily food journal where you write down everything you eat. If you’re trying to save money or eliminate debt, this is a useful practice as well. Write down every single thing you spend money on in a given week, from your big expenses like gas and groceries, to all of the little impulse purchases you make along the way, like coffee and take-out. You’ll be surprised by how much the little things add up (same goes with your eating habits). 

2. Cut back - once you have an accurate picture of your spending or eating habits, determine what you can live without. Do you need to eat at so many restaurants throughout the week? Do you need to buy new clothes every time pay day rolls around? Eliminate the things that won’t make much difference to your everyday life (for me, that would be things like magazines or baked goods – stuff I buy or eat out of boredom and not because I necessarily want them that badly) and cut back on the things that you truly enjoy but probably indulge in too frequently (like dinners at fancy restaurants).

3. Save room for the occasional splurge - be vigilant when cutting back but don’t get too crazy. If you’re trying to save money, set aside a small cushion for entertainment and leisure. If weight loss is your goal, allow yourself a weekly treat or cheat meal. These little splurges will allow you to still enjoy life so that you’ll be more likely to stick to your plan in the long term.

4. Set a realistic goal – now that you’ve adjusted your spending habits, compare your expenses to your income. How much can you afford to put away each month and, if you consistently follow through, how long will it take you to achieve your overall goal? This is how you define your long-term savings goal but make sure it’s realistic. If, for example, you’ve based your rate of saving on unrealistically low expenses, you’ll likely fall short every month.

Similarly, if weight loss is your goal, determine how many calories you should eat to lose weight based on your daily caloric needs and activity level. Aim for a conservative deficit that won’t leave you hungry. A goal of 1-2 pounds per week is usually a good target.

5.  Make mini-goals – like weight loss, saving money is a long, slow process. Stay motivated by setting weekly or monthly mini-goals. This will help you keep track of your progress, which is way better than discovering six months later that you really haven’t accomplished much at all.

6. Re-adjust if necessary – as you go along, you might find that your original goal was too ambitious (or not ambitious enough). Alternatively, your circumstances might change, making it easier or more difficult to save. If this happens, go back to steps 3 and re-adjust your goals.

7. Every little bit helps – just like taking the stairs instead of the elevator – a seemingly small daily decision that can add significantly to your overall calorie burn – even small contributions to your savings account can add up over time. In addition to the money you’ve set aside for saving each month, see if you have any extra cash floating around after you’ve paid your monthly bills. Even if it’s only an extra $10 here and there, save it. You won’t even miss it and over a year it can add hundreds to your savings account.

8. Get support – tell everyone you know about your goals. This makes you accountable and accountability is one of the best ways to stay on track.

9. Get creative - one of the biggest obstacles when it comes to weight loss is the fact that most social events revolve around food. Similarly, most social events involve spending money.  While it’s unrealistic to expect to completely eliminate ”fun” spending (or eating) from your budget, you can cut back by thinking of free ways to have fun. Go for a hike. Check out a local street festival. Look for deals on Groupon or other group saving sites. There’s no reason why you can’t have fun while cutting back.

10. Avoid all or nothing thinking – as with any diet, chances are, you’re going to slip up once in a while. Don’t fall into the trap where you figure you’ve blown it so you might as well continue along your downward spiral and just start fresh tomorrow/next week/next month. If you’ve gone a little overboard with your spending (or eating), get back on track right away.

Are you good at saving money? Do you have any tips for saving money?