Savings plan 2

In place of savings plan 1, you'll have to implement a plan on your own. The best way to do this is to deposit a certain amount of money into a savings account every time you cash your pay check. It doesn't matter how small or large the deposit is, what matters is that you do it every time you cash your pay check.

Under this plan, you are treating the savings like a regular bill and it's the first bill you pay every time you get paid.

Over time, your savings will grow and become too large to leave in a savings account that earns little in the way of interest. Take some of the money and invest it in the stock market or in CDs if the interest rates are good. If you invest in the stock market, buy mutual finds shares, not an individual stock.

Some people use whatever is left over from their pay check as their savings. The problem with this plan is that rarely, if ever, is money left over. People just naturally spend as much money as they have in their pocket so they hardly ever add to the savings.