One way to increase your saving ability is to make the money you earn work harder for you. First, start a notebook or online spreadsheet to keep track of your spending for a month. At the end of the month, do the math to see where your money is going. You might just be surprised. For example, buying lunch every day at work can easily add up to more than $100 a month.
Changing your shopping patterns can help, too. Frugal young professional Nikki Rogers told us she's found a way to save money on daily essentials. "I buy toilet paper, laundry soap, allergy pills, razors and other basics only when they are on sale and stock up -- that way I never need to buy a basic necessity at full price."
Rogers also found another painless way to increase her savings. Every time she gets a raise, instead of thinking of ways to spend the "extra" money, she continues to live off the smaller amount and puts the money from the raise into savings.
How can you save money when some expensive catastrophe always seems to land on you when you least expect it? Read on to learn about emergency funds.