It does not matter how much you earn, everyone needs to save some money. Whether it is for that special end of year family vacation, a home, or for securing a good future, saving is one of the best practices and habits you can have.

Some people might think that if they earn very little, then they may not be able to save but this is not true. Anyone can save some money despite the amount they make. Many financial advisory journals tell people to save about 20% of their income but the truth is that not everyone makes enough to be able to save that percentage. But everyone can save something from their income. No matter how little savings it is, every penny counts and will add up over time. Every journey begins with a single step and even if you want that million, you have to begin somewhere.

One of the first and most important steps is to have a plan for how much you spend and on what for a day, week, month or even year. This type of plan is known as a budget and it is a very important tool not only for saving but everywhere money is involved. A budget gives you clarity and guidance, so you can see what you actually need. With the right budget in place you are better able to decide what needs to be bought versus what you want. Without a budget, you end up buying whatever you desire and end up foregoing longer-term satisfaction. If you keep running out of money before your next paycheck, then a budget is doubly important for you: you need to have discipline about what you spend and a budget will serve as re-enforcement of good spending habits.

Once you know what you need, then you can start analyzing what you actually spend money on. To save more, regardless of your income, you need to eliminate any unrealistic expenditure or unnecessary ones. An example of this is buying coffee or lunch every day when you could make it at home. Every dollar you spend on coffee or fast food is a dollar you could be saving.

Another place to look for savings is in bills and fees. Many people have a bad habit of paying their bills late which attracts penalties. Plan to pay your bills in advance of when they are due. This works best if you include them in your budget plan and make note of the due dates. You should also compare prices for services like cable or phone service to see if you can get a better deal. Note that comparing prices is a good idea in every situation: if you start comparing prices at the grocery store instead of just buying the brand you know, then you will see savings immediately. Looking for coupons and promotional offers is a great money saving tactic. Most businesses have seasonal promotions and grocery stores always have sales on essential items.

Look at your banking as a place to save money. We typically use the bank that has the most branches and ATMs in our area, but you should think about the services and fees you are paying. Something as simple as ordering cheap checks online may end up saving you money. Also think about how often you go into a bank branch. If you don’t use other bank services like safety deposit boxes, then consider getting an online account so you can get higher interest rates (many online banks also reimburse ATM fees).

Most of your budgeting and saving will revolve around your regular income, but you should also think about the little extra bits of cash that occasionally come to you. Every time you get money that was unexpected like a gift or even lottery, do not assume that because it is free money you can spend it. Save this money instead and consider it an additional investment in your future.

How much money you save comes down to how much you can afford, but with some planning and discipline you can find money to save every month. Set a realistic goal, create a budget and look for savings everywhere you can. Most importantly, make sure that the money goes into a fund specifically for a rainy day, emergency or future home purchase (whatever your goal is). This money will give you a cushion if things get bad and give you some flexibility if you decide to make changes in your life.

Follow the advice outlined here and you will find that you have money to save every month and that this money adds up quicker than you could imagine.