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The headlines these days are less than promising. You cannot pick up a newspaper or watch television without being reminded:

Homebuilders stay grim in August

Stocks smacked by bank woes

Oil rises as storm may disrupt supply

Scoop: Jen takes high road as John tells all

Okay, maybe not that last one, but you get the idea. With so much focus being placed on credit quality and other economic woes, you have to plan for tomorrow. Here are some easy ways to save.

Pay yourself first! Does your company offer a 401(k) plan? If so, contribute at least the amount up to your employer match. For example, if they match 50% of the first 5% you are receiving an automatic 50% return on your investment! The money that you contribute to your 401k plan is not included in your taxable wages; therefore you will pay fewer taxes on your income. Remember – taxes are not due on any interest or growth within the 401k until you take the money out of the account.

Are you paying Uncle Sam too much? Some people overpay their taxes to get a fat refund from the IRS every spring. This means they are lending money to the government interest-free! Stop and review your tax return from last year. Adjust your withholding so you get smaller refund – say $100. This frees up your money so you can use it money NOW. (And put the refund into an interest bearing savings account when you get it.) Visit www.paycheckcity.com and let their easy to use calculators assist you.

Do not spend your yearly raise! Let’s face it, in these tight times companies are cutting back on the merit pool. Take that meager 3% to 5% raise and defer it to your 401(k). You are already living without the additional income and this defers that income into a tax free environment.

Save your unexpected income. Everyone enjoys some type of windfall. Each year utility companies refund a portion of your deposit. Bank it!  Birthday money from Grandma? Bank it! Dividend check? If you do not automatically reinvest it, Bank it!! 

Save your pennies. Literally! My grandparents were not only frugal, they were just plain smart. They tossed all of their loose change into a large container and cashed in before the holidays. They had a nice pile of cash for their holiday shopping….and never missed a penny.

Putting these simple ideas into place will not only save you money….it will save you a lot of worry.