Saving can seem awfully drab but it is a great way to plan for the future, protect you from emergencies, and plan something fun. There are some quick and painless ways to achieve your goals.

The first step in saving is writing down your goals. What would you like to accomplish in the next five years? Do you want to go on vacation or remodel your home? Maybe you have long term goals to retire early. Planning and making realistic goals can help you achieve them.

Once you decide your goals you will also need to take into account an emergency fund. An emergency fund is extra cash that you set aside for a very rainy day. These funds are not for a new sofa or paying off credit card debt. You will use this amount in a true case of an emergency. You will want to save up about three to six months of expenses. You may not be able to do this right now but a good starting point is $500. This cash will be there in case of loss of job or major home or car damage. This safety net will keep you protected while planning your next steps.

It is important that you put saving first and not leave save whatever is left at the end of the month. Whatever your goals are put them ahead of your other expenses. Some banks will even automatically transfer funds from your account to a savings account each month so you never even notice it's gone.

A lot of people question if they should be saving and paying off debt and there is a lot of debate in the finance industry. But, it is very important to always have savings set aside for an emergency and saving up for your retirement. While paying down credit card debt it is important that you not accumulate more debt at the same time. If this means leaving your credit cards at home and paying with cash then you should do so. When deciding which card to pay off first there are a few things to consider. It is important to have your credit card balance below 50% of its limit. If you have two cards that are below and one that is maxed out you will need to pay down the maxed out card first and you will see a very quick credit score boost. You can then begin to pay down your smaller debts and put the snowball effect to work. You can also begin paying off debt by paying down the accounts with the highest interest rates. Once you have all your debt paid you can begin to apply these payments to your savings.

Another key to saving and paying off debt is realizing where all your money is going to. Keep a log of everything you buy and spend money on. At the end of the month check to see how it adds up. Are you spending $200 a month on coffee? By putting this money into a low yield savings account each month you can earn hundreds back in interest by the end of the year. That's how you make your money work for you!

This is where needs vs. wants comes in. Do you need a Grande Non Fat Hazelnut Latte each morning or would a simple at home brew of coffee be fine? What if you brought your lunch to work instead of eating out? You can also make lots of cut backs at the grocery store. Look at your spending log and see areas where you can downgrade a little and save a lot!

There are a few small tricks you can do to help boost your savings as well. Instead of saving your pennies save all the $5 and $10 bills that come into your wallet. Or, if you receive a raise at work, save the extra cash instead of spending it. So many Americans gain more debt with more income. It doesn't have to be this way.

You now know where you are going to be getting your extra savings from, where are you going to put them? The most basic way is a simple savings account. These are great because you can remove your money anytime you want with no penalty, but you will have a much lower return on your money. An online savings account offers higher interest rates than what you can get at your local bank and you may even receive a signing bonus.

A certificate of deposit (CD) mature and will pay you interest in 30 days. If you leave your money in longer you will earn a higher rate. A money market fund is a mutual fund designed to invest in low-risk securities. Typically, a money market fund requires that you leave your money invested for a designated period of time and cannot be removed.

A 401K retirement account allows you to receive a greater return on your money than a traditional savings account. With these accounts all taxes are deferred until after you retire. A Roth IRA lets your money grow tax free after you have paid taxes on the amount.

Having a little extra savings will give you a feeling of security and protect you from a lifetime of debt building. These simple steps will get you to wear you to a comfortable place and help you achieve your dreams.