Paying yourself first has long been a strategy to increase savings and build a foundation for a secure financial future.  Even in the best of times, paying yourself first is often difficult for individuals living pay check-to-pay check.  It is not hard to understand why many people have found this increasing difficult to implement in the past year or so when paying day-to-day expenses has become more difficult for more Americans.  Unfortunately without making paying yourself first (or at all) a priority, many of these people will never achieve their financial goals.  If you think it can’t be done due to limited resources the following tips can help you find extra money in your budget to begin saving for your future needs.

• When it comes to real estate you often hear location, location, location.  In the world of personal finance the key word is automate, automate, automate.  That is right, if you simply establish an amount that you can reasonably put aside each week or pay period, and have it automatically transferred into a savings account you will probably never miss the money.  Even as little as ten dollars per transaction will begin to grow and build a foundation for future savings and growth.
• Participate in employee sponsored retirement accounts.  If your employer offers a 401(k) or other retirement program you would be foolish to not participate.  This is especially true if your employer is willing to match contributions you make.  These types of programs literally offer the closest thing to free money that you will find.  Make sure when setting up your account that you select an amount that you can afford to contribute.  Obviously the more money you invest the better the opportunity for growth, however it is important to make sure you are not socking away money that you could be using to pay down high interest debt or other expenses. Carefully review your budget to determine a contribution amount that will fit in with your household budget.
• Keep paying your debt after it is paid off.  That’s right, whatever amount you were paying toward credit cards or other debt should be moved to your savings account once the debt is paid off.  You already are accustomed to not having that money as “disposable” cash so moving it to your savings account before it becomes absorbed in your daily spending will guarantee future savings.
• Bank extra money.  There are so many ways to save money.  As more people jump on the “spending less” bandwagon, you may find yourself cutting coupons or eliminating unnecessary spending.  All of this “extra” money should go directly in a savings or investment account.  Do the same thing with raises, bonuses, refunds or extra pay checks and watch your savings grow!
• Put yourself on the list of people to be paid.  Simply changing your mindset about saving money can make it easier to begin making sure you get paid.  Consider yourself as another bill or financial obligation and determine an amount you have to be paid out of each check.  Then when your pay check hits your bank, pay yourself just like you would the cable company or your mortgage note.

These are just a few of the things you can do that will help you find extra money each day to fund your savings.  Most people who think they cannot pay themselves first are surprised at the many ways they can funnel their money into accounts for better use.  Get started today to reach your financial goals.

Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.

When funds are low and you need to cut back, you’re forced to take a new look at your priorities.  If you’ve reached the point where you’re truly struggling, you might be unable to pay your credit cards.  So what do you do?

Don’t Stop Making Credit Card Payments

If you simply stop making payments, you’re putting yourself in a worse position.  Even if you stopped using your credit card, the current debt will continue to accumulate interest charges and late fees, and these can get out of control if left alone.  Your credit score will also sink lower and lower the longer you do nothing.

Wait long enough and you risk serious damage to your credit score, your history, and your finances.  You creditor could send you to collections, and if the situation becomes bad enough, you could be forced to file for bankruptcy, which will remain a huge black mark on your credit report for 10 years.  Similarly, the creditor could take you to court and win a judgment authorizing them to garnish your wages and claim personal property.

A long history of debt can be tough to get out of, so try to recognize the severity of your financial problems before it gets to this point.  You have options catch it early enough.

Establish a Payoff Process

First, tackle your debts piece by piece.  Pay off your smallest debts first to start removing them from your credit report.  Then take the amount you were using to pay off the smallest one and put it towards the next smallest.  A process like this will take a long time to successfully complete, but it’s a steady and fairly sure process if you’re diligent about it.

You can also talk to your creditors.  Most credit card companies offer hardship programs where your interest or even your payments can be waived for short period of time.  This will show on your credit report, but if you use this little grace period to save up the money you owe, you’ll be back on track instead of in the black.

Talk to your lender, also, if you know you can only make partial payments.  As long as they accept that you are making an effort, it could prevent them from taking action against you.  You may also have the option of debt settlement, where the creditor may agree to let you pay off your debt for less than what you actually owe, and sometimes that can mean you’ll only pay up to half of your actual balance.

Of course, you want to make sure you’re able to make your mortgage payments, keep food on the table, etc.  When you organize your priorities, credit card payments may come up last.  But don’t just let them go.  Take action and use the options that are available to prevent your debt and credit score from tanking.  Stay focused, and it will be possible to turn things around.

If you’re buying a home in 2009, you could qualify for the first-time home buyer credit.  It allows you a credit of up to $8000, and it’s not a deduction, where you might only get a certain percentage back.  It counts as a complete refund, so you get the entire amount!  Here’s what you need to know.

First-Time Primary Residence

The home you’re purchasing has to be your primary residence.  If you’re buying a vacation home or any secondary residence, you won’t qualify for the first-time home buyer credit.  You also have to own the residence for three years, or you’ll have to pay back the entire credit.

As long as you haven’t owned a primary residence within the last three years, you’re on the road to qualification.  It gets a little tricky if you’re buying a home with your significant other.  If you’re married and you owned a home but your spouse didn’t, neither one of you will qualify for the first-time home buyer credit.  However, if you’re not married, the person that did not own a primary residence can help qualify the purchase.

Home Buyer Credit Limitations

It’s important to note that you are not guaranteed $8000, though.  The amount you actually get back is 10% of the purchase price of the home, up to $8000.  There’s also an income limit.  Single people can qualify with an income of up to $75,000 a year, and married couples can qualify making a combined income of $150,000.

Once you get past the qualification, receiving the credit is fairly easy.  You do not need to fill out any special forms; just claim it on your tax return.  Again, it doesn’t count as a deduction because you will be receiving the entire amount back, so if you happen to owe money on your taxes, the first-time home buyer credit could turn things around and the government will end up sending you a check minus what you owed.  You can also talk to your employer to adjust the income tax withholding if you want to see your money sooner than next year, or speak to your mortgage lender about how to apply the credit toward the down payment on your new home.