Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.  This time she talks about getting a jump start on saving money.

Stop Waiting For A Rainy Day To Start Saving Money

If you are waiting for the day when you have “extra” money to start saving, you might find yourself waiting for a very long time. In reality, extra money simply doesn’t exist. There will always be a bill or a place that you can use additional money in your budget. So if you can’t count on extra money, what is the next option to start or increase your savings while still paying the bills? The answer- you have to create money for savings out of your financial situation. Here are a few tips to help you start saving money.

• Establish financial goals. By setting both long and short term goals, such as paying off credit card debt or saving money toward a down payment for a car or house, you will be more likely to stick to a savings plan. Take the time to write down your goals including a time frame in which you would like to reach them.
• Set up a savings account. If you don’t already have one, set up a savings account to keep your money separate from your daily money. It requires a huge amount of discipline to have money in your regular account without finding some way to spend it, either on bills or perhaps items you really don’t need. Conversely if you have your money in a separate account you will be less likely to spend it have the added benefit of watching it grow. You might be surprised to learn once you start to see the amount of money increase in your savings account, you are less tempted to spend it.
• Make and stick to a budget. This is age old advice yet something that people still do not always follow. Know you income and your expenses and budget your spending accordingly. Spend less than you make. Easier said than done some may say, but if you expenses exceed your earnings you have to make whatever changes necessary to either increase your earnings, reduce your expenses or both if needed.
• Commit to a percentage of your income that can be applied to savings. Ideally putting away 10% of your income is a good place to start. If after examining your budget you can’t cover your expenses minus that percentage, determine what amount of money you can set aside that will allow you to pay your bills while starting your savings. The key is to start and in order to do that you have to allot a percentage of your income to save and once you do- forget about it. Out of sight, out of mind is a good way to think about it. If possible see if you are eligible for a direct deposit to your savings account from your paycheck, which will make it easier to stay on track. You will soon discover if you never have it, you really don’t miss it.
• Apply any additional money toward savings. Tax returns, bonuses, raises or income from additional employment should all go into your savings account. By putting any unexpected or additional cash in your savings account you will see how quickly it can grow. As your savings grows, you can begin to see how all your hard work is paying off and eventually you will be able to continue contributing to your savings without cutbacks and sacrifice.

Keep in mind that real financial freedom and true security comes when you are able to pay off your debt, pay your bills, contribute to savings and still have money remaining for enjoying life today instead of wishing for better things tomorrow.