WEALTH ACCUMULATION RULES FOR SAVING MONEY

Pay yourself first. This is the number one rule!!! It may be difficult at first but you will find the small amount you save will not be missed after the first month or so. This is a great way to get in the habit of saving. Pay yourself first,
not last. If you budget to save $100 monthly and, for example, you budget $100 for eating out, pay yourself $100 first and then as the month goes along you may find yourself short and may have to cut back on your eating out. It is best to cut back on "eating out" than on your savings plan.

Pay yourself automatically. Simply have a certain amount of your check deposited into a financial account every month. You can start out by depositing it into a normal savings account, then as the amount increases, it can be switched to accounts that offer a better yield (CDs, etc.)

Save 10% of your monthly income. If at the stage of your life you do not feel you can do this, then save 5% and gradually work up to reach the 10% mark. And if you can save more, wonderful! You'll be thankful you did when you retire.

Develop a sound investment strategy. Invest regularly through a process called dollar-cost averaging. This means investing a specific amount at regular intervals which enables you to even out the cost of your investments over time.

Avoid "get rich quick" schemes. There are always those out there who will offer you an investment that "should earn you a great deal of money." But be extremely cautious. The majority of such investments will end up costing you money. Stick to solid, safe investments.

Be very aware of the power of compounding. This means that you will be
earning interest not only on what you save, but also on the interest that is generated. There are many investment opportunities, but the simplest strategy is to just leave it alone and let it accumulate over time, or "compound." Money saved at 7% will double in approximately seven years.

Source:http://wealthinfoplus.com/WealthAccRules.html