CUT YOUR EXPENSES

If your expenses are so high that you can’t save as much as you’d like, it might be time to cut back. Identify nonessentials that you can spend less on, such as entertainment and dining out.

Here are some ideas for trimming everyday expenses:

• Use resources such as community event listings to find free or low-cost events to reduce entertainment spending.
• Cancel subscriptions and memberships you don’t use—especially if they renew automatically.
• Commit to eating out only once a month and trying places that fall into the “cheap eats” category.
• Give yourself a “cooling off period”: When tempted by a nonessential purchase, wait a few days. You may be glad you passed—or ready to save up for it.

SET SAVINGS GOAL

If you’re saving for retirement or your child’s education, consider putting that money into an investment account such as an IRA or 529 plan. While investments come with risks and can lose money, they also create the opportunity for growth when the market grows, and could be appropriate if you plan for an event far in advance. See step No. 6 for more details.

Tip: Set a small, achievable short-term goal for something fun and big enough that you aren’t likely to have the cash on hand to pay for it, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the fun reward you’ve saved for—can give you a psychological boost that makes the payoff of saving more immediate and reinforces the habit.

TRY NOT TO MAKE YOUR SAVINGS ACCESSIBLE

Make sure your savings are not accessible, do not save in your home where you can easily go back to spend from. you can save your money in the bank or with a friend that you sure he/she is quite discipline.

MAKE A BUDGET FOR SAVINGS

Once you have an idea of what you spend in a month, you can begin to arrange your spendings. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance.

Tip: Include a savings category—aim to save 10 to 15 percent of your income.

MAKE AUTOMATIC SAVINGS

Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so a portion of every paycheck goes directly into your savings account.

KNOW YOUR PRIORITIES

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.

RECORD YOUR EXPENSES

The first step to start saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip.

Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you’re accurate—and don’t forget any.