The most important thing is to be able to distinguish what you WANT and what you NEED. People confuse these two far too often, therefore spending more than necessary.

Get yourself a savings account. Do not just let your money sit on your current checking account. Many banks offer up to 5.05% APY. Remember, the more money you deposit, the higher your interest rates will be.

Be able to put away at least a minimum amount of your regular paycheck money into your bank account. People are used to driving to their ATM only when depositing large sums, such as $50 or higher. Many do not realize that putting away even $20 every other week can give you a jaw-dropping result in the long run.

Set a budget; calculate a limit to which you live by. It's understandable money needs to be spent from time to time due to life's many circumstances, but if you don't train your mind to spend a "set amount" per month, you WILL lose track of your money, and yet you won't even know where it all went.

Pay those bills on time! Avoid unnecessary late fees that can easily double the original amount you owed.

To be better motivated, set some ground rules and strict goals. Know where you want to be in five years, know when you want to have your dream house, and start saving accordingly.

Start making your own meals. Instead of driving to your favorite fast-food restaurant on a daily basis, cut back on the habit and take some home made lunch with you. It's perfectly okay to eat out from time to time, but overdoing it can lead to spending over $50 a week without even realizing it.

---