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Saving money is something we all want to do. Whether you make 6 figures at your job or your strapped just to make the rent payment, savings is an overlooked necessity. There are a few things you can do to start creating a cushion between the paycheck to paycheck life. The following 7 tips on savings could change your life:

1) Tip one is probably the easiest and most overlooked option you have to create a savings nest egg. The majority of jobs give raises periodically throughout your employment history, including the occasional bonus. Take your raise or bonus money and start a 401K or Roth IRA with that exact amount. Who cares if its only 3-4%, its a start and starting a savings plan is the hardest part.

2) Tip two is something that's been catching fire lately with banks, Money Market savings accounts. These wonderful accounts average a very attractive 5% interest which blows away the typical .5-1% you get in your normal account. Beware though these accounts usually have stipulations such as requiring you to pay a bill online or perhaps a minimum balance. Either way the extra dough can come in handy down the line.

3) Tip three is battle of willpower. Stop buying food, drinks, and snacks individually. I'm talking about the Starbucks coffees, the vending machine candy bars, and the lunch from the company cafe. Instead purchase these items at a warehouse store or grocery store. Buy a thermal mug and coffee maker. To put it bluntly a $1.70 coffee a day adds up to $442/year on just a 5 day work week schedule. That my friends is a car payment.

4) Take advantage of any type of matching policy your company has regarding 401K or IRAs. This money is FREE! I know there aren't many free things in life but truly the company's matching money is one of these rare phenomenons you must take advantage of. Stop buying the coffee from tip 3 and invest at least 1% of your check into these types of accounts.

5) Tip 5 is an assessment. Lease a car but only if you won't go over your lease mileage. The best scenario is if you are a family and you or your spouse works close to the house. Own one car for long trips and lease one car as a commuter car. By doing this you have the potential of saving $200-300 a month. Don't worry about not having equity in a vehicle, use the extra savings to earn 10-12% in your 401K or IRA accounts. You could even use this money to start up an emergency savings account using tip 2, 5% is a decent return.

6) Watch your taxes closely. Don't rely on or expect a big return come April. Educate yourself about what your tax situation will look like the following year and adjust your monthly taxes accordingly. Why give the government an interest free loan when you could be earning 5-12% on your money depending where you put it.

7) This one's a simple and easy way to accumulate a few hundred dollars a year. Grab a container, jar, or box and place it next to wherever you take your keys out of your pockets. This is where you need to put all your loose change. This is nothing fancy but a good way to save up for a night out with your spouse. Go see a movie and get a good meal while paying for a babysitter at the same time. After all what good is saving money if you can't use it every now and then.

These 7 tips are things you can do everyday to start saving money. I realize it might be harder for some people to start this type of savings but the key is that you need to start. There are so many Americans that are living paycheck to paycheck and if you stop and think about it logically; You are closer to becoming homeless than you think. So start now, start tomorrow, just plain start saving money to protect you and your family from events beyond your control.

Learn more about this author, Erik M. Dell.
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