Don't Waste Your Money Makeover: Tips and tricks to increase your savings

(WXYZ) - Money can be easy to spend and tough to save.

Only 14% of Americans are confident they'll have enough money to live comfortably when they ready to retire. 60% of workers say they have less than $25,000 in savings.

These are just two staggering statistics from the most recent survey from the Employee Benefit Research Institute.

But if you have a plan, it can make saving simple.  Join JoAnne Purtan for the Don't Waste Your Money Makeover Sunday at 11am to transform your savings and your retirement, plus learn ways to better protect yourself from some sneaky scams.

Robin Thompson of Budget Wise Consulting, Inc. will share these 4 steps to jumpstart Your Don't Waste Your Money Makeover:

1. Set a goal.

Set a goal by deciding what is really important to you. Having goals means that you make sacrifices in some ways, and if the goals are not compelling, then it's hard to stay motivated to achieve them. Goals should be specific, measurable, and have a timeline, so determine the cost and when money is needed.

A goal to "save more money in 2013" is vague. Instead, be more specific in setting a goal to "save $3,000 for a winter vacation by December 15th." You will know exactly what you must do by a certain date.

2. Create a spending plan.

Next, make a spending plan to account for all income and expenses. Calculate your net cash flow by subtracting fixed expenses (mortgage payment, insurance, etc.) and variable expenses (groceries, entertainment, etc.) from your income. The remaining money can be used toward accomplishing your goal.

In order to save $3,000 by December, you'll need to find $250 per month. It would be great if you have that amount to spare. But if not, then find other areas to cut spending to support your goal.

3. Pay yourself first.

Since you have to save money to reach your goals, it is important to have the mindset to treat it as an expense. Write a check to deposit into your savings account when you are writing checks to pay bills or you can schedule automatic deposits into your checking account each pay period. The key is to move the money before you spend it.

4. Follow your money.

Track your spending to recognize patterns and cut back in areas where you can. This has become an amazing reality for everyone I have helped in some way. For example, you think that only $150 was spent in eating out in a month; but the reality is that you spent $250. Tracking helps you to make adjustments as you go.

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