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You can't spend what you don't have. Some of the best ways to make sure you don't let the temptation of a cashed paycheck get the better of you are as follows:

1. If your company provides such a service, sign up for direct deposit of your paycheck into your checking account.

2. If you have on-line banking with automatic bill pay, set up a weekly deposit into your savings account, and make sure the date of that "payment" is set to the day after your paycheck clears your checking account so you'll pay yourself first.

3. Avoid using credit cards whenever you can. Instead, establish a budget for grocery shopping, gasoline, entertainment, and whatever weekly expenses you have, then set aside that money in envelopes in cash. Never give exact change when you make a purchase. If you bought something for $12.06, give them $13 and put the change in a little pouch, then immediately put that change into a jar when you get home. In my small family, we practiced this simple technique and were able to make deposits of between $300 and $800 into our savings account every four months.

4. Have a goal in mind. If it's a vacation or a second home, find a photo of that goal and put it inside your wallet. Whenever you're tempted to buy something you don't need, make sure you'll see that photo of your long term goal to help you resist temptation. Immediately take the money you would have spent on that unnecessary item and put it into your saving jar for your quarterly deposit to your savings account.

5. Keep it painless. It will be much easier to stick with a savings plan if you design it with some extravagance built in. Decide on at least one reasonable purchase you'll treat yourself to each week, and enjoy it without guilt. It will be much easier to pass up other temptations if you don't feel as if life is no fun at all.

6. If you do carry balances on credit cards, don't be afraid to call them up and ask for a reduction in your interest rate. All they can do is say no, and in most cases, if you have a good payment history, they will lower it for you. Often they'll lower it dramatically. Use that lower interest rate to pay off your credit cards sooner. Once a long-standing bill has been paid off, add your monthly payment to the payment you make to yourself.

Following these simple rules will start you on the road to addiction of saving. But perhaps the best way to stick to a savings plan is to use your imagination. Challenge yourself to find out how many different ways you can save a penny here and a dollar there. You'll not only feel terrific about yourself, you'll be exercsing your creativity muscles that will serve you well in all that you do.

Learn more about this author, Cyd Madsen.
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