It is possible for you to save money even if you feel as though you live paycheck to paycheck and your wages are totally committed to paying your bills. Saving money is a matter of habit not finances.
The most basic form of saving is to establish a regular savings account at your local credit union or bank. Credit Unions will typically provide you with an easier route to a savings account because they very rarely charge fees or impose limitations, whereas most banks will require minimum balances and/or restrict your usage and charge you fees if you do not meet those requirements.
One way to start a savings account is to set up a direct deposit into the account straight from your paycheck. This simple step can, many times, mean the difference between being a saver and being a spender. While some of you may tend to spend money you do not have, most of you will find a way to live within your means. If your money is taken out of your check before you receive it, it is much easier not to spend it. While you will still have access to it, the mere fact that the money is not sitting in your checking account ensures that you will need to take additional action to use those funds. If you are not currently a saver, or if you are convinced that you need every cent of your wages to pay bills and cover your spending needs, start small. Take $10 out of your paycheck through a direct deposit to your new savings account and forget about it. You might be surprised how easy it is and because you are setting your own savings goal, there is no need to feel any pressure to increase the amount or reach a certain savings level. At this stage, it is important just to concentrate on the act of saving, no matter the amount you save.
This article is part of Scott Arney's educational series, entitled The Serial Decision Maker.