Direct Deposit

• Many employers allow their workers to split their direct deposit between two different accounts. If your employer provides this capability, contact your human resources department to redirect part of every paycheck to your savings account. You can direct a specific percentage of each paycheck to your savings account, or you can specify a dollar amount. Either way, you will be putting money away for a rainy day and getting into the savings habit.
  
  

Automatic Transfers

• Transferring money directly from your checking account to a savings account is an excellent way to increase your level of overall savings. You can set up a scheduled transfer to coincide with your paydays, or you can set up a transfer from your checking account to your savings at a specific time each month. These automatic transfers force you to save, and force you to live on less money than you make.
  
  

Retirement Accounts

• You can increase the value of the money you put into savings by putting that money into a retirement account, like an IRA or a 401(k). You can choose to have money withheld from your paycheck and sent to your workplace retirement plan, or you can transfer money from your bank account to fund your annual IRA contribution. Contributing money to a tax-deferred retirement account gives you an upfront break on your taxes, as well as the potential for long-term growth.
  
  

Ramping Up Savings

• After you get used to saving money on a regular basis, you can start to ramp up your savings to put more and more money away. As you start investing, you can become better and better at budgeting your money and finding extra funds to invest. When you do, you can increase the amount you put aside, and that can help you save more and more money. As time goes on, you can use your newfound savings strategy to build an emergency fund, save for short-term purchases and reduce your debt.