1. Hide the Money
It’s harder to spend what you don’t have easy access to. So be sure to set aside a percentage of your pay in savings before it ever hits your pocketbook.
Simply have your employer withhold money from each paycheck for your 401(k) or 403(b) retirement account. Make sure to reserve enough to get the full company match, if your employer offers that benefit. If you use direct deposit, you can request that your funds be funneled into both a checking account and a savings account (which doubles as an emergency fund). Another option: Have your bank set up a standing automatic withdrawal that will transfer a sum from checking to savings. Schedule this transaction for the day after each paycheck is generally posted, so that the money goes away before you’re aware of it, says Meg Favreau, Even after your emergency account is fully funded (that is, with enough money on hand for about eight months’ worth of expenses), keep setting aside at least $25 per paycheck to have a more secure safety net, says Brian J. O’Connor,