How Do I Save Money When There's So Little to Start With?

The first step in saving money is deciding that it is possible. Far too many people think they can't save money. If you are one of those people, try to start thinking of saving as a necessity.

Then, convince yourself that you can save, no matter how little you have left at the end of the month. Saving money really isn't about how much we make—even people who many would consider wealthy often have a difficult time saving money. It's about how well we take care of the money we do earn.

It's about living within our means and making choices that help us reach our goals.

You can start saving money with two steps: increasing your income and cutting your expenses.

To increase your income, you could:

• Take courses or training to qualify you for a higher-paying job or a promotion
• Work overtime
• Take a second job
• Turn a hobby or skill into an income-producing business
• Have a yard sale or garage sale to sell items you rarely use

To cut your expenses, you could:

• Follow the "rule of three" when making a purchase: compare at least three similar products to be sure you’re getting the best deal
• Buy store brands at the grocery store
• Avoid buying prepared foods, fast foods, and carry-out meals

The Living Within Your Means section of this Web site has even more ideas on cutting expenses.

If you don't have a lot of money to save, don’t worry. Just a few dollars a week is great and will add up over time. What’s important is that you start putting money aside and make it a habit.