by Lynn Dancey Rudkin

Created on: August 09, 2009   Last Updated: October 17, 2009

With mortgage or rent, car payments, utility fees, insurance for car/home and health, shoes and clothing, prescriptions, medical care, home and auto maintenance, groceries and a multitude of other demands all slappinig us in the face, we can easily lose sight of the fact that we can use simple ways to save money for major purchases and for retirement.

Think of watchwords our parents and grandparents used: A penny saved is a penny earned. A stitch in time saves nine. Take care of the little things and the big ones will work themselves out. Behavior, not a master's degree in finance, can help build a comfortable life through painlessly changing your budget through modifying your way of life. Savor the feeling of being rich for a few moments when your paycheck arrives. Then get serious and make a list for distributing the money.

WHERE TO START

Where do you go after designating necessary living costs? Start with all expenses for the month and when those payments are due: cover the essentials first so you don't get stuck with excessive late fees and high interest, then budget the remainder. The most important job is breaking your financial plan into needs and wants.

List the essentials of church/charity, mortgage/rent, electricity, water/sewage/trash pickup, gas, telephone and possibly cable. Maintenance for vehicles, insurance for home and vehicles, groceries, entertainment, clothing, and gifts also must be considered. Know the difference between Real and Artificial expenses, extra clothing, designer clothes, new or pre-owned, movies, luxury trips and other entertainment. Does a one-income family really need a second car, or is that a luxury? Does each teenager in the family need a car, or can the kids share with each other or drive the family car?

So, in getting started, how do you eat a turkey sandwich? Not by taking one overwhelming gulp, but by nibbling one bite at a time. The same holds true for saving. If you want $1,200 for a large-screen, hi definition television, break that down to saving $100 a month, which is manageable by cutting out specialty coffee on the way to work each day, using public transportation when available, and toting lunch to the office instead of eating out.

LIVE SENSIBLY

As financial pressures mount, parental cliches come back to haunt us: only after becoming mired in debt do we appreciate that their admonishments carry much truth.

* Buy what you can afford when you have the cash; don't buy when you don't have the cash.

* Learn to

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