Some Easy Ways to Save Money

Savings money is the key to achieving any measure of financial success and saving for retirement. Here are some fun and easy ways to save money (that don't involve selling blood or plasma):

Seize the free money. If your company offers a 401(k), 403(b), or other retirement plan and offers to match the money you put in (many companies will match 25% or 50% of any money you contribute with a cap at a certain amount) - YOU MUST ENROLL in the plan. If not, you are leaving free money on the table. Ask your human resources or payroll administrator for more information regarding your companies' retirement plan. Many financial professionals list "failure to take advantage of company retirement plan contributions" as the number one mistake that employees make.

Create an old fashioned savings jar. Take any large leftover clear plastic or glass jar and make a firm commitment to fund it. Try adding $20 per week, or every $5 bill that you have in your wallet. Or every time that you look at the jar put a dollar in it. Also put a big sign on the jar that describes what your goal is. Seeing the jar call out to you with "Vacation Fund" or "Cabin By The Lake" or "Early Retirement" will make it all the more compelling to add money. You'll find that with regular and dedicated funding, the amount of money in the jar will grow faster than you could imagine.

Holiday bonus from work? IRS refund? Unexpected windfall of money? Apply the "Rule of Thirds". Put one third of the money into long term savings like an IRA, Roth IRA, or investment account. Put another third into short term liquid savings such as a money market, short term Certificates of Deposit, or savings account. And spend the final third of the money on whatever frivolous material possession you want. Buy a new car, pet rock, or high definition TV. You can spend the money and enjoy doing so guiltlessly knowing that you've already saved some money for the future. Though if the amount of money in question is large, you may want to reconsider this rule and apply an even larger percentage to savings.

Analyze your expenses and decide what is truly important to you. Can you live without cable TV and save $30 a month? Rent a movie instead of going to the theater? Grow some vegetables in your backyard instead of buying them at the store? The possibilities are endless, and small lifestyle changes can easily save you $100 a month, with very little effort or sacrifice.

Many other terrific ideas have already been covered in previous posts pay yourself first, set up electronic debits to an investment or retirement account, live below your means, take your lunch to work in stead of eating out. All of these are great ideas. Pick and choose a few and experiment to see which ones work best for you, because the most useful method for saving money is the one you adhere to and brings you success.