So make a decision to start today!

Saving - no matter how much or how little you save - is a fantastic way to feel confident and in control of your 

finances. Not to mention that it helps you to achieve your future goals. So make a decision to start today!

Step 1 - Get a plan

The first step is to decide what it is that you want to save for. Whether it's something specific such as a holiday or a car, or a more general goal such as having a cash buffer for "just in case", knowing what it is that you want will give you the motivation to start putting money aside.

Grab a piece of paper and a pen and write a list of your goals under the headings "Short Term" (1 - 3 years), "Medium Term" (4 - 10 years) and "Long Term" (10 years plus).  Then prioritise which goals are the most important to you. You might want the lot, but you've got to prioritise!

Step 2 - Allocate a cost

Allocate a cost to your important goals. When you divide that cost by the number of months between now and when you want to achieve the goal, it will give you a rough estimate of how much you need to save each month to make it happen. For example, a $5,000 holiday in two years time would be a savings goal of around $200 per month between now and then. A $15,000 house deposit in five years time would be a savings goal of $250 a month.
Once you know how much you ideally want to save you can look at some strategies to make it happen.

Step 3 - Do a budget

For most of us, saving money will mean cutting costs so that it can happen. The most effective way to cut your costs is to do a written budget so that you can work out what exactly it is that you do spend your money on. Try our budget planner http://news.infochoice.com.au/banking/savings-account/budget-planner-calculator.aspx to get started.

There are plenty of easy ways to cut your expenses, such as repaying personal debt, taking a cut lunch to work, cutting your bank fees, cooking instead of getting takeaway, shopping with cash instead of credit. Even spending a few hours reviewing your telephone, electricity, car insurance and home and contents insurance contracts could net you some significant savings.

Step 4 - Set up a separate account

Alright, now that you know how much you need to save and how much you can save, set up a separate bank account to put your savings into. That way the money won't get mixed into your everyday transaction accounts and "accidentally" spent!

Next - have you heard the expression: "out of sight, out of mind"? Ask your employer to direct debit your allocated savings amount straight into your purpose-built bank account every payday. That way the savings money is never in your spending account and eventually you'll even forget that it's happening.

See our ‘Choosing an account' http://www.news.com.au/money/guides-tools/choose-an-account/story-e6frfme0-1111114588164 tips for further assistance.

Step 5 - Know your finances

While you will most likely start off your savings in a cash account, there are also other investment options available. What investment is right for you will depend in part on how long the money will be invested for (your investment timeframe) and how personally comfortable you are with certain forms of investment (your risk profile).

For investments other than cash (such as shares and property) you should seek professional advice