Financial experts advise setting aside income in order to save money rather than taking on a second job or increasing income in another way to save money. As income increases, the natural inclination is to increase spending as well. It is hard to decrease your lifestyle but comfortable to maintain it. So when you get a raise, use the extra money for savings. Saving for large goals can seem overwhelming, but considering how much money should be set aside on a weekly or monthly basis seems more reasonable.
Saving begins with a simple decision of how much to save each week to meet financial goals.
Earl Grinols, professor of economics at the University of Illinois tells his students that the rules for making one million dollars are to invest 10 percent of gross income until age 45, then increase savings to 15 percent of income. Following these rules, the average American will have 1.1 million dollars at retirement. Fact sheets and other publications on saving and investing money are available through University of Illinois Extension unit offices. Consumers can also subscribe to the Money 2000 program that encourages consumers to save their money and reduce debt. The program offers a variety of educational resources for subscribers.