The trick to saving is knowing how and making it a habit. There are a number of different ways to save money to help you become wealthy. All you need to do is make sure that saving money becomes a priority for you.

Systematic Savings

By saving a set amount on a regular basis, you are more likely to continue saving. Follow the mantra, “Pay yourself first,” and you will come out ahead in the long run  This includes any retirement accounts you have, including your employer-sponsored retirement plan. A good way to make sure you do pay yourself first is to write yourself a check before paying any bills. Another good way is to have your bank account automatically debited to your investment accounts each month. Maximize your contribution to your 401(k), 403(b), or other employer-sponsored retirement plan. Since this money comes out of your paycheck before you receive your check, you are more likely to stick with this. It is also the easiest contribution to make, since you don’t actually see the money. Money grows tax-deferred until you begin to make distributions. These contributions will also help lower your taxes because they come out of your check before taxes are taken out, thus lowering your taxable earnings. But, taxes will be due once you begin to make withdrawals. And, any withdrawals made before you are 591/2 may also be subject to a 10-percent IRS penalty. If you are self-employed, consider starting a SEP-IRA. Through this type of account, you will be able to shelter up to 20 percent of your income until you retire. You may want to maximize this account as well, since it will grow tax-deferred.

Set up a traditional or Roth IRA and then maximize your contributions to these. Any money you contribute to a traditional IRA is tax-deductible on your federal income taxes. With the new changes in the tax law, you can contribute a maximum of $3000 per year to either a traditional IRA or Roth IRA. You could split your contribution between the two as well, being careful not to exceed the $3000 maximum. While contributing to a Roth isn’t tax-deductible, it grows tax-deferred. Plus, when you begin to make distributions from a Roth, the earnings will come out tax free. There are limits on how much income you can earn and still be able to contribute to your IRA, though. Be sure to talk with your CPA to make sure that you are making the maximum allowed investment for your situation. Do you get quarterly or annual bonus checks or raises? Consider saving these, rather than spending them. These will help increase your savings at a faster rate. Ignore that raise you just received when you do your budgeting. If you don’t increase your consumption habits, but increase your income, you’ll be able to save more without skimping on your living expenses.

Manage Your Charge Cards Wisely

Every day my mailbox is overflowing with offers proclaiming, “Preapproved!” or “No preset spending limit!” Sometimes the urge to apply for and use charge cards is overwhelming. Unfortunately, many Americans have fallen into the trap of revolving credit card debt without considering their budgets, how they will pay off the balance, or how the payment will affect their other financial goals. By running up your bills and then only paying the minimum, you will never reach your goal of becoming wealthy.

While debt is a tool that can be used to your advantage, it can also be very dangerous. The more debt you have, the more buying power you have. However, learning when to leverage your debt and when not to is very important. Having a mortgage on your house is alright. It’s also okay to leverage your business as long as you can make your payments. What’s not alright is to dig yourself so deep into debt that you cannot find your way out. That is, don’t use your cards to finance a life that you can’t afford to keep. If you find that you are in debt, consider these ways to erase it: Refinance your mortgage, review your budget to eliminate unnecessary spending, use debit cards, pay more than the minimum on debts, or pay charge cards in full.

Think about refinancing your mortgage if interest rates have dropped, especially if you plan on staying in your house for the next few years. By refinancing at a lower rate, you will save yourself a lot of money in interest payments. Also, when refinancing, try to reduce or eliminate any money you would pay on points or fees. Be sure to shop around at a few banks to see what the best rate you can get is. Many banks now will give you an ATM or debit card when you have a checking or savings account with them. This can be a helpful tool in addition to your credit cards. Because the card is directly tied to your bank account, your spending limit is the amount of money you have in the account. Many stores and restaurants accept these cards as if they were regular charge cards. They also function as debit cards at some stores, enabling you to get cash back if you are short on actual cash. For example, you spend $25.52 at a retail store. By using your ATM card as a debit card, you can increase that total amount to $40.52. You will then receive the other $15 from the cashier as cash. Be careful, though, that you don’t spend so much that you deplete your bank account, and make sure you know what fraud protection comes with the card since policies aren’t the same as credit cards.

Every month when your mortgage or car payment comes due, see if you can pay more than the minimum amount due. By doing this, you will (over time) significantly reduce the total amount paid because the interest due will be lower. Plus, you will also reduce the amount of time you are paying on your house or vehicle. Just because you have taken out a 30-year mortgage doesn’t mean that you have to be paying for the next 30 years. If you find that you can’t seem to get out of the debt cycle, and you have equity in your home, consider taking out a home equity loan. Although I generally don’t recommend this, it may help. By taking out a loan on your house, you could use the money to pay off your credit card debt and any other outstanding debt you have. Again, as with refinancing, try to reduce or avoid any fees or points. Check with your CPA to make sure the interest on the loan repayments is tax deductible. This way, you will be replacing your non-tax-deductible debt with tax-deductible debt. However, be sure that you don’t borrow more than your house is worth. There are some companies who will let you borrow up to 125 percent of what your home is worth. This is a bad idea and could lead to more trouble.

Shop Around

With the advent of technology, Americans have become more and more impatient. Our Internet connection is too slow, the line at the grocery store is too slow, or traffic is moving too slowly. This attitude has been passed along to the things we purchase, as well. Why should you want to shop around and compare prices when what you want is right there in front of you? The answer is simple: because by shopping around and doing some homework, you will likely save yourself a lot of money over the long run. Ask yourself about your shopping habits. When you need to purchase something, do you buy it at the first place you see it? Are you an impulse buyer? If you answered “yes” to either of these questions, you should consider revising your habits. This is easy; all you need to do is shop before you buy. One of the best places to shop I’ve found is at warehouse clubs. I frequent the warehouse club in my town for both home and office needs. I’ve discovered that by buying items in bulk quantities, not only do I wind up spending less over time, but also I don’t have to go shopping as often. Although there is usually a small membership fee for joining, the savings you rack up will more than make up for it. But you don’t have to purchase just groceries there. Discount warehouses carry all the assorted toiletries that we need on an everyday basis, plus prescriptions. Don’t confuse shopping with buying. Shopping is a means of comparing the prices on goods that you will purchase at some point. Have you ever decided that you really needed an item, purchased it at the first place you found it, and then saw it at another store later at a much lower price? Shopping would help eliminate this problem because you would become an informed shopper. Do some homework. Is the more-expensive name brand something you really need, or will the less-expensive generic brand suffice? For example, there are many over-the-counter generic aspirins that cost a fraction of what the name brands do. Just like the name-brand bottle, the generic bottle of aspirin that is $2 cheaper must also meet the rigid standards of the Federal Drug Administration.

You may also want to think about delaying the purchase of something that isn’t necessary. Are you taken in by the infomercials that are on TV? Did you purchase the Ginsu 2000 steak knife, only to put it in a drawer and never to use it? If you find yourself thinking that you need the newest, latest thing you saw advertised on TV, write it down. Then wait a few days and ask yourself if you still “need” it. Chances are, your “needs” are actually “wants.” In just a few days’ time, you may decide you don’t even want it anymore.

Invest

Putting all the money you are saving into your savings account at the bank may sound like a great idea, but over time you may not be doing yourself any good. Quite simply, although savings accounts are interest bearing and aren’t tied to the stock market and its fluctuations, the interest that you earn on your account won’t keep up with inflation over the long run. I base the inflation projections for each financial plan I do on the national average and forecast, as well as on what time frame I’m looking at. Traditional savings accounts don’t earn enough interest to keep up with inflation. Plus, if you begin to take out income from your savings account on a regular basis, you will find that you deplete your account much faster once inflation is figured in. The only way to make your money work as hard for you as you did for it is to invest it. The same is true for Certificates of Deposit (CDs) and money market funds. During a down market, the interest rates on bank CDs and money markets may look attractive, but they may not help you. The best time to invest money is during a down market. Buying low and selling high is the tenet of good investing. However, this goes against human nature.

Think about it, would you rather buy a car for $12,000 or $10,000? How about a gallon of milk for $2.49 or for $3.49? Easy, right? You would rather buy the car and the milk at the lower price. Why, then, do people insist upon buying stocks and mutual funds at their high point? They do this because cause of fear—fear of making the wrong decision. People believe that if everyone else is buying the stock, then they should get on the bus, too. However, it’s often those who wait who get burned in their investments. By waiting to see who else has purchased that new, hot stock, it’s usually past the point where you make money. Therefore, when the stock starts to go down, the first people who lose their money are the ones who were the last to jump on the bandwagon! Don’t be afraid to make a wrong decision about investing. That’s what your advisor is there to help you with. It’s deciding not to invest that would be the worse decision.

Get excited

By taking this first step to becoming wealthy, you have done what millions of Americans can’t or won’t do—take control. Be proud of yourself and your achievements. By taking pride in what you are doing, you will be more likely to continue. Above all, don’t be afraid to make decisions. Even if you find out that you have made a bad decision, think of it as a learning tool. Always learn from your mistakes.

Some of the wealthiest clients I have are excellent decision makers. They make quick, informed decisions, not hasty ones. Nor do they procrastinate or waffle in their judgment. However, they aren’t afraid to ask for help or advice, either. And neither should you. Since you have decided to go this route, you will need to hone your decision- making skills. You’ll continue to need them down the line. for purchasing the goods. However, the greater the stock price, the more inclined people are to purchase shares. This doesn’t make sense.