Saving isn't easy - we all know we should do it but we all find it hard to get started.
The first thing to do is to get budgeting. Make a list of all your incomings and outgoings. Figure out where you can cut back and make a plan you think you can stick to.
Then open the best instant access savings account you can - the best rates at the moment come from tax free cash ISA accounts. You can see the rates here and find out more about how different accounts work here.
If it makes it easier for you, don't call it a savings account - call it a Freedom Account.
Here are five ways to kick the habit off:
1. Pay yourself first: have a direct debit from your current account into your saving account going out as soon as your paycheck arrives every month. If it goes out automatically you won't miss it.
2. Empty all the change in your purse and pockets into a jar every evening. Once a month take the jar to the bank and pop it into your account. Two pounds a day and you'll have £730 at the end of the year - plus interest.
3. Keep your mind on compounding. Right now interest rates are unusually low - that means that savers aren't getting much of a return on their money. But that will change. And when it does your savings will suddenly benefit from the magic of compounding. Put £1000 in an account paying 2% for 5 years and you'll have £1104.08 in the end. Put it in one paying 5% and you'll have £1276.28. Do it for 10 years and you'll have £1218 at 2% or £1629 at 5%. Or to put it another way around if your money earns interest at 2% it will take 36 years to double. At 5% it will take just over 14 years. Big difference.
4. Figure out what your post-tax income is by the hour. If you earn £30,000 your annual post-tax income will be about £22,620. Work a 40-hour week for 46 weeks a year and you will see that you are clearing about £12 an hour. Now look at everything you buy with this in mind. Thinking about a £60 pair of shoes? That's five hours work. Still want them? It works for me.
5. Stop paying full price for stuff. Use freecyle, eBay and myvouchercodes.co.uk. Put the extra straight into your savings account.
Merryn is Editor-in-Chief of Money Week.
