First of all, you should make a list of all of those things that consume all of your money. Include the payment of loans and bills along with your daily or monthly expenditures.
If you are paying a high interest on your home mortgage then immediately refinance it in order to cut down the interest rate which will save you a considerable amount of money on a monthly basis which can be between $100 to $200 a month.
Always take your lunch with you at office as it will save you sufficient money at the end of the month that you otherwise spend by having lunch from different restaurants. It will save you almost $100 a month that you spend on lunch deals.
You should prefer to buy grocery for the whole month at once because it will save you a considerable amount of money as many departmental stores offer discount rates when you spend a specific amount of money.
You need to keep watching if there are any promotional offers from different departmental stores. These promotional offers always save a lot of money if you purchase grocery for the whole month.
Make sure you avoid purchasing those items that are not required at the moment or which can be avoided to use. You should buy only those things that are necessary and stop purchasing anything extra.
You should also avoid making long distance calls from your home phone which will also save a considerable amount of money. Also try to avoid using extra electricity appliances which will also help in reducing the amount in electricity bills.
The most important thing is that you should set up a budget in way that could help you in saving $500 per month. Try your level best to spend the whole month in this budget by cutting down all extra expenditures that disturb your budget.