3.4 Direct credit to savings account

If possible, have your employer deduct a set amount from your pay cheque each pay period and deposit it into your savings account automatically. The old adage "out of sight, out of mind" works well here. Having to transfer money to your savings account is a little like giving someone who is trying to quit smoking a cigarette to carry around in their pocket and expecting them not to light up. Why tempt yourself? Make it easy and increase your chances of success with automatic deposits or transfers.

Whenever unexpected money comes your way, put all or most of it into your savings account. Bonuses, salary increases, tax refunds, rebates, overtime pay, income from hobbies or yard sales and other windfalls can pump up your savings account nicely without requiring additional cutbacks.

If you're forced to dip into your savings for an emergency, consider it a loan which must be paid back in a reasonable period of time, and set up a repayment schedule.

That's all there is to it! The "secret" is that there's no magic involved. The key is to start now and stick to it.