If you save more than 6 percent of your income, you are in the minority [source: U.S. Dept. of Commerce]. Few households have enough savings to cover the costs of an emergency or even a planned event such as a wedding, so financing covers the immediate needs. Taxes and funerals are inevitable, but cash at hand is typically not enough to cover the costs. In each of these instances, a bill and interest have to be paid.
Saving and planning allows your money to earn interest and builds an interest-free method of payment: cash. Having money taken out of your paycheck is a great way to get your hands on your own money before others do. You can pay your savings account and earn money in interest.
Bill yourself each month, and pay that bill first. Try allocating $50 to $100 off the top of any earnings and see if you miss it. If the amount creates too much of a pinch on your cost of living, try a smaller amount and build by taking another look at your spending. If you don't feel a thing, think about adding more to your bill.