An Easy Way to Save - Save More Tomorrow Plan

Saving money is difficult for most people but professors Shlomo Benartzi and Richard Thaler have developed a plan to help us save for the future. The Save for Tomorrow plan asks people to commit in advance to contribute more of their future earnings to their retirement plan each year. So when you receive a salary increase in the future, you will automatically have more money moved from your paycheck to your retirement account. In effect you sign a contract with yourself to save more each year before you see the money.

If your company does not offer this plan, you can do it yourself if you have the discipline. Every time you get a salary increase, simply increase the amount that you contribute to you 401(k). If you don't have the money in your pocket, you cannot spend it.