Although it sounds funny, considering current state of personal finances in US, many consumers do not know what steps to take to start saving. But a few considerations and changes to how you view spending and saving may help you free up cash and get on the road to savings stability:

• Write it down: At this point, is it retirement, having a reserve account, or just getting into the habit of putting aside a small amount of monthly income? No matter how far along you are in the savings game, write down your goals so you can refer to them, whether occasionally to ensure you're on track, or daily as a reminder.(please see "Savings Goals" for more information).

• Pay yourself first: This is one of the golden rules to any savings plan, if not personal finance in general. Always set aside a portion of your personal income for savings before paying any bills or creditors. This does not mean avoid your payment obligations; just ensure that you get some of your hard-earned income for yourself before paying or spending it away. If you need more funds for bill payment, you can just transfer the exact amount needed to meet all of your obligations. Paying yourself first will add up over time.

• Automated savings: set up automatic deductions through direct deposit. Instead of having all of your income deposited into your checking account, have a portion deposited into savings vehicles like reserve accounts or a 401(k).

If you don't think you have funds to set aside, there may be other aspects of your financial health you can adjust to free up cash for savings:

• Understand Needs v. Wants: A need for day-to-day living can include housing, water, heat, electricity, transportation, clothing and food. A "want" or desire can be considered anything you have been sold or marketed to buy, like your daily latte, a watch you can only afford through financing, leather seating in your sedan, etc. Review your needs and wants.
• Set up a budget: Knowing how much your expenses actually are will tell you how much you can save---they're usually less than you think. Creating and following a budget can enable you to find areas where you can free up disposable income that can be used to start a savings plan (see articles on "Budgeting" for more information).

Keep in mind that not keeping a budget is an indicator of poor financial health, and potential financial difficulties, including credit and debt mismanagement. Getting on track by budgeting will help you clarify where you may need to make more drastic changes to your spending habits.

• Use credit wisely: The interest paid on items purchased using financing or credit cards eats away at potential savings. By limiting the use of credit, coupled with limiting unneeded purchases, you can start reserve savings and even for retirement. Please see articles on "Understanding Credit" for smart credit use.
  
  
  References
  
  Moneywise.Help Your Savings Grow
  
  FCIC.Personal Financial Fitness