The formula behind earning, saving and investing your money is simple. Spend less than you make. Save the remaining. Invest those savings.

- Subtract all your monthly expenses from your monthly income (income after taxes and all deductions) and the amount remaining is your savings each month (income – expenses = savings).
- Take some of those savings each month and invest it in an index fund in the stock market to earn more money. Keep the remaining in a savings account for emergencies.
- That’s it! No complicated formulas or advanced financial concepts needed.

Keep in mind, there are exceptions to every rule and formula.

- When you subtract your expenses from your income and you receive zero or a negative amount, it means you are spending more than you are earning. You should find ways to cut your expenses so that you can save at least $50-$100 per month. Even a $1 in savings each month invested will add up. You’d be surprised!
- If you are unemployed, earning a minimum wage or considered to be below the poverty level, it will be difficult to save money, in today’s economy. But, you shouldn’t give up. If you are able to save and invest $10 or even $1 each month, it will slowly add up and you’ll be surprised at the amount of savings you’ll have at the end of the year. Then, find ways to increase your income by looking for a better paying job in your field or getting financial aid to attend college and obtain a degree, so that you can increase your income and thus your savings.

I believe everyone has the power and skills to save money. It doesn’t require a fancy degree, complicated formulas, or advanced knowledge in finance. You just have to remember to spend less than you earn.