by Pam Stushnoff

Created on: January 24, 2007   Last Updated: April 13, 2007

Saving money doesn't have to be hard. And you certainly don't have to deprive yourself of the basics. Here are several ideas to get you on track to a great savings plan:

1. Have a set amount(say $100 - $200 or 10%) deducted automatically from your pay and deposited into a seperate savings account. You won't miss the money since it never shows up in your spending account. This is known as 'paying yourself first'.

2. Set aside 50% of any 'windfall' money. This could be lottery winnings, cash gifts, inheritances - anything you didn't have to earn. Deposit it ASAP into your savings account before you get a chance to spend it.

3. Keep a piggy bank by the washing machine. Drop all the coins you pull out of the wash into it. Deposit this money once a year into your savings account.

Now that you have money coming into your savings account the next step is educating yourself on how to manage your finances to get maximum growth.

1. Explore the different types of investment options that are available for you. Learn your risk tolerance level and make a plan. Look at stocks, bonds, mutuals, RRSP's, T-bills, etc. Talk to the investment person at your local bank and get your hard earned money working for you.

2. Learn your tax laws. There's no use giving the government any more money than necessary. Figure out what you can do to maximize your deductions. Talk to a tax planner.

3. If at all possible do things yourself. Instead of hiring contractors or installers do it yourself. Buy a self help and study the procedure before hiring someone else to do the work. It could save you big dollars.

Saving money is a frame of mind that could eventually become a lifestyle. By thinking of saving as a positive thing and not just something you have to do, it becomes automatic. As your savings grow doors start to open for you. Suddenly, you have collateral and can afford to buy that rental property (another money maker, and more collateral). The key to financial freedom is to get started.

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