Take Control of Your Finances

Money can't buy us love, but it sure can get us everything else. What is more, our consumer culture encourages us to want everything and to buy everything even if we don't need it or can't afford it. Easy credit will take care of that. As a result, more and more Americans live paycheck to paycheck and defer any plans for a nest egg or emergency fund to some undefined time in the future. If you ask them what they're waiting for, they'll probably say that they will start saving when they have the money to spare. I'll let you in on a little secret: It will never happen that way.

Saving money is not a question of extra cash. It is a question of determination, focus, planning, commitment, and control of your financial circumstances. You can save money even if you are not making much. Here are 10 easy ways to start (and commit to) a savings plan:

1) Set your financial goals, both short- and long-term. You cannot have a savings plan without specific goals. You need to be working (read: saving) towards something.

2) Organize your financial paperwork: purchase receipts, ATM printouts, bank statements, credit card statements, bills, paycheck stubs. The lot. Paper clutter begets confusion; confusion begets mindless spending. Get to know your paperwork.

3) Track your finances regularly and diligently. Make a spending plan, a budget. You can find free spreadsheets (budget templates) on the internet. Here is a good place to start.

4) Once you find a template that works for you, use it and keep using it. Log in your monthly income and expenses (both projected and actual) month in, month out. Budgeting is a wonderful thing because it sheds light on all the little loopholes through which money trickles (or even gushes) out: that elusive "extra" money, the money you could be saving instead.

5) Spotlight all and any expenditure you can trim, start trimming, and never look back. This is the time for you to examine your financial "needs". Could there be any "wants" in " needs' " clothing hiding somewhere in there?

6) Don't deprive yourself. Just be practical. Are you spending too much on clothes? Eating out? Designer sneakers? Hardcover thrillers? Think clothing sales, home cooking, generic products, library book loans (as well as CD and DVD loans, come to think of it).

7) Decide on a specific amount of money to be put away in savings every month. Open a savings account and have that amount transferred automatically so you are not tempted to spend it. However little, it will keep adding up.

8) Educate yourself in financial matters. Read up on saving and checking accounts, investments, and how to deal with credit card debt. Bankrate.com is a user-friendly site, chock-full of useful tips you can use to put your financial house in order.

9) Pay down (ideally, eliminate) your credit card debt. Try to pay more than the minimum to reduce interest payments and financial charges. Limit your use of credit as much as possible. You cannot invest in your future if you are chronically in debt.

10) If extra money happens to come your way, don't spend it. After all, you were not counting on it in the first place, right? Use it to pay down any debts and save the rest. You won't regret it.