Save More Money
A realistic approach

For the longest time, it seemed like all the big financial gurus started out their advice on how to save with suggestions like "cut out that morning latte." Sure, sounds simple enough, but for many of us, that morning latte or after work dinner with friends is what keeps us going amid the humdrum of the day to day. Really, if not for life's little pleasures, what is there right?

While a growing bank account sounds pretty sexy, for those of us who fit this particular description, it loses its appeal when it comes at the expense of having a life! Lucky for us then, that their are advisors like Suze Orman who never objected to getting your Starbucks fix in the first place). Below is just a taste of her advice on how to save money without affecting your quality of life… and it's simpler than you think!

It all starts with automation. The best way to avoid spending your money (and in turn, wind up saving it) is to have it taken it out of your take home pay.

Start with a 401(k)
Did you know that more than half of eligible employees aren't taking full advantage of their company's 401(k) match.? And a third haven't even signed up! Experts advise that you get in on that offer as soon as possible. Before you make any other decisions about investment (and don't worry, we'll be bringing you more advice from these pros throughout the week), elect to contribute at least as much as your company requires to get the full employer match - which is usually between 3% and 6% of your salary. If your company doesn't sponsor a 401(k), don't worry. You can create something similar for yourself by opening a conventional IRA, Roth IRA or SEP-IRA. There is an initial investment (check with your bank for specifics), but once it's set up, you can arrange for automatic transfers from your checking account.

"Raise" your savings!
One of the best times to increase your savings (and help it continue to grow) is after your annual review. When your pay goes up, save at least half of your raise. Have the chosen amount auto-deducted from your paycheck or bank account on the day your paycheck goes in and you'll increase what you're saving without cramping your lifestyle!

Once you set practical financial goals and make a plan for how to achieve them, you can apply the same principles of automated savings to other goals, such as building an emergency fund or saving up for tuition or vactions. Now get going!