How to easily sock away more money each month

If one were to conduct a quick poll of people across the country about the one thing they’d like more of, chances are the majority of respondents would reply “money.” More than time or days off from work, most people seem to want and even need more money, especially as the country approaches a recession.

So what is it about money that proves so elusive to so many people? More often than not, it’s not the money that’s elusive, but saving the money. Most people would admit they have trouble saving money, which can create the illusion that they don’t make enough. For most people, not making enough isn’t the problem; it’s not saving enough. This sets a bad precedent, especially for those with an eye on retirement.

In a 2007 analysis of surveys conducted into defined contribution plans such as 401(k) retirement programs, Watson Wyatt Worldwide found that, among lower pay employees ages 50 to 64, 66 percent have lower than one year’s pay in their accounts. Barring a miracle, that makes the idea of a comfortable retirement almost impossible.

While saving money can seem like pushing a boulder up a steep hill, it’s not as hard as it sounds. For those looking to save more, consider the following tips.

•Enroll in a retirement savings program: This is perhaps the ideal way to save money, as programs such as a 401(k) remove the money from a paycheck before taxes. Essentially, that money is being saved before an individual can even see it, acting almost as forced savings. In addition, employers may match 401(k) contributions up to a certain level, meaning you’re saving even more money. Those who do enroll in a 401(k) program should not look at it as an emergency fund, as there are tax penalties for removing the money early.

•Use public transportation whenever possible: Most people have seen their automobile expenditures skyrocket over the last several years thanks to the ever-rising cost of fuel. Also, people with low balances in their savings accounts often cannot put a large down payment down on a new vehicle if they need one. Therefore they have higher monthly bills and are typically only approved for vehicle loans after agreeing to higher interest rates. Essentially, it’s a domino effect that can all be avoided if reliable public transportation is offered. You can still keep your vehicle, but using public transportation to get to and from work will result in less money spent on gas, less mileage on the car (increasing its life expectancy and decreasing repair expenses), and will likely lower your insurance rates if you inform your provider the car is not used to commute to work.

•Cook and prepare your own meals: Many people waste a good deal of money on a daily basis by eating meals outside of their home. Cooking or preparing your own meals is a consistent way to save significant amounts of money each month. Instead of buying a muffin or bagel each morning for breakfast, buy such items in bulk at the grocery store each week, and prepare your own lunch as well. Coffee drinkers can also save substantial amounts of money by brewing their own coffee at home and taking it to work in a travel mug. It might seem like a small adjustment to make, and it is. But it will save you substantial amounts of money each month.

•Drink lots of water: While it might seem odd to suggest drinking lots of water as a means to save money, it actually makes more sense than it might seem. A notable symptom of dehydration is hunger, so people who do not drink enough water often feel hungry when they’re likely just dehydrated. By drinking the recommended amount of water, you’re avoiding spending money on those mid-afternoon snacks, the price of which adds up by the end of a typical week. Medical professionals recommend drinking eight to 10 glasses of water per day, or about 80 ounces.

•Avoid hidden fees and pay bills on time: Creditors and lenders make money hand over fist each month thanks to late payments or hidden fees. If your accounts have minimum balance requirements, know what the minimum is and make sure you have enough in the account to avoid the charges. Also, use only ATMs from your actual bank. ATM fees add up quickly, and some banks even charge their own customers ATM fees for using another bank’s ATM, meaning you’re paying double the fee simply to access your own money.

Bills also must be paid on time. Late charges, particularly on credit cards, are often exorbitant and are always wasteful. Know when all bills are due and be sure to pay them on time.