What are the common sense types of strategies that help people increase their savings?

Question

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The Answer is There are several common sense types of strategies that help people save money. These are explained next.
1. Goal Setting
Unrealistic goal setting is perhaps the most important reason for the failure of savings strategies. Imposition of a 20 percent a year savings goal on a family that is experiencing difficulty in making both ends meet is bound to fail. The best rule is to set a savings goal which the family does not consider burdensome.
2. Self-rewarding Plan
Saving for college education, retirement, vacation, or purchasing a big ticket item is a long and difficult undertaking. Consequently, if the family exceeds the targeted annual savings goal, it should reward itself by spending part of the extra savings. This will provide an added incentive for the family to meet the savings goal in the future.
3. Savings-first Approach
We live in a consumption-oriented society where it is easy to buy on credit. Few of us realize that our savings rate would dramatically increase if we avoid buying items on credit. The reason is that we would not only save the interest charges, but also could benefit from investing these savings.
4. Automatic Savings Plans
One of the painless ways of saving is to automatically deduct money right from the paycheck and invest it in an appropriate vehicle. Money saved this way has the tendency to grow to impressively large amounts over time.
Several vehicles are available for implementing automatic savings plans. One of these vehicles is Series EE savings bonds. If these bonds are held for five years or longer, the return is based on the average yield of five-year Treasury notes. The yield cannot dip below a minimum rate - which is adjusted from time to time.
Contributions to company-qualified plans are the second method of instituting an automatic savings plan. A qualified plan can take the form of a pension, profit sharing, thrift, or 401(k) plan. Many plans allow participants to choose among various investments, including stock and fixed-income funds, company shares, and guaranteed investment contracts. Earnings in qualified investments grow tax-deferred until the money is withdrawn.
A third technique for instituting an automatic savings plan is to instruct the bank to automatically switch every month a fixed amount from the money market fund into specified mutual funds and benefit from using dollar cost averaging. This will not only make the net worth grow faster but will also help the saver achieve more effectively the longer-term financial goals like educational funding and retirement.

What Are the Common Sense Types of Strategies That Help