Start saving your money NOW!

Guess what?

Most people have it within their power to increase their savings by 30 - 50% INSTANTLY!

Sound good to be true? Try this:

Let's say that in the average month you save $100.00. You probably don't even move that money to a savings account - if you do, you're smarter than most people. The average Joe will just spend what he wants and what's left at the end of the month is "saved." So let's say Joe transfers $150.00 to savings the same day he deposits his paycheck and now only spends what he has left for that month. Get the picture? You've just increased your savings by 50%!!

You may have heard the phrase "Pay yourself first" tossed around by self-help financial gurus...well, this is what they mean. Before you spend money, put some away for yourself. Don't even think about it, do it automatically!

If you want to increase the amount of money that you're able to "keep" for your future, then LISTEN UP: It is easier to NOT spend money than to earn more! Think about it. Let's say that you want an extra $100 a month to begin saving/investing. Think about how to earn extra money - work more hours, work harder, work smarter, get another job...etc. Those are all good things...and you should do them if you want to increase your earning power. But now think for a second about how easy it could be to simply NOT spend all your money.

Now a word here on spending: if you have a problem NOT spending money and like 80% of Americans, you are living paycheck to paycheck - you may want to start taking your finances seriously. Do you have a spending plan (a trendier, cooler word for "Budget")? Do you track it? Computer software makes it easier to do this than ever before. Invest a few dollars in Money, Quicken, or some other financial software and track everything!

Next, figure out how much money you want to save and start an automatic savings plan. Many banks offer online banking with automatic transfer options. If you're not getting a good savings rate, check out what banks are giving good rates at Bankrate.com. I use ING Direct, which gives a very good rate and is easy to use. Set up an automatic transfer into your savings account every month.

How much to save?? That's up to your, your budget, and your goals. Try to save at least 10% of your income with a goal of getting 1 month of your income saved within 1 year (you should get there at 10 months if you're saving 10% a month!!). Ideally, you want to get up to 3-6 months of your salary in savings. That way if you can't work, or need to make a large purchase - you'll have some cash.

Questions/Comments:

Do you have a separate savings account and use automatic transfer?
Is it hard to start a savings plan? What are some changes you've made to adjust?
Is tracking your spending "fun" or "work"? Ideas to make it more interesting?
Try to set tangible savings goals. This helps you strive for something. What are some of your savings goals?