How to Save Money While You're Young

Whether you're young or old, saving money can be hard. With daily expenses and those sudden emergencies that come up, payday for you can turn into "exchange" day with your creditors. But if you're young, you can start planning now to save money by making that a part of your everyday budget.

Instructions

1. Know how much money you have coming in each month. If you're lucky to have a steady income, this can be easy. But if your pay is on an hourly basis, or your wages vary week-by-week, you can average your income over the course of three to four months to establish an income level.

2. Make a written budget with your income and expenses. Include in your budget all possible expenses that may arise. If you have an expense that you pay on a yearly basis, such as car insurance, divide the total amount by 12 to come up with a monthly average. Set aside money in your budget for your savings so you can "pay" yourself first.

3. Separate your spending money and savings money. Open a separate savings account that is not at your local bank. Research banks or credit unions that are in a neighboring city or town so you're not tempted to withdraw money on a whim. Accounts through online sources, such as ING Direct, may be a good option to look into.

4. Consider a shared living arrangement. Whether you live at home with your parents or share a house or apartment with a roommate, you can cut costs and leave more money for your savings by sharing expenses.

5. Use public transportation. Automobiles carry a lot of expenses-maintenance, gasoline, insurance, parking-so if you live in an area that has access to bus lines or subways, opt to use the transportation means available and forgo a car.

Tips & Warnings

• When you meet your savings requirements for the month, allot yourself fun money as a reward.

• Don't live above your means.