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1. Every time you get a paycheck, pay yourself first by depositing money in a saving account. An easy, effective way to start is to deposit 10 percent of every check in a savings account.
2. Open an interest-bearing savings account, separate from your money for living expenses. Also consider CDs (certificates of deposit) for longer-term savings.
3. Ask your employer to deduct savings from your paycheck. The money is directly deposited in your savings account so you never see it on your paycheck. You can also have investments for retirement taken directly out of your pay, and the taxes may be deferred.
4. Stop using credit cards. People end up spending money they don’t have. Make purchases with bills, not exact change, and put the change in a jar. Some banks now offer free coin counting machines. When you redeem your coins, deposit them in your saving account.
5. If you receive unexpected cash, put all or most of it into your savings, but continue to set aside your regularly scheduled amount as well. You’ll reach your savings goals sooner.
6. Trim your expenses. Keep a record in Taskwise to record expenses. Once a week take a hard look at your spending record. When you look back at your expense record: $50 on a parking ticket, $100 on DVDs–cuts become obvious and desirable.

“Thanks to a deep recession, our buy-it-now-and buy-it-big culture is moving into a lower gear…” writes Barbara Kiviat in How to Save Bigger, Time, May 18, 2009.

Tips

• Always OVER estimate your expenses and UNDER estimate your income.
• Use the web to search for vacation deals instead of paying full price. Some sites partner with resort companies to offer vacation discounts around the world.
• Shop with a predetermined list. Going out “window shopping” with money in your wallet tempts you to spend money you could be saving, or paying yourself.  After a hard work week, you may want to indulge in some luxury, telling yourself, “I deserve this.” The items you buy are not gifts to yourself; they are trades for your hard-earned money.
• Don’t try to cut corners connected to health. Skipping basic preventative care for yourself and your family may lead to expensive problems in the future.

For more strategies, read the May 18 issue of Time magazine, http://www.time.com/time/magazine/article/0,9171,1896741,00.html