Pay yourself first

Be sure to pay yourself first. When you are paid, take 5-10% of your earnings and transfer it to a interest bearing savings account, money market account, or mutual fund. Most money markets and mutual funds have a $500 to $1000 minimum balance, but they will earn more per dollar. Meanwhile, while getting your minimum balance, you can put it in a interest savings account, such as ING Direct (www.ingdirect.com), which charges no penalties for transfers, has no minimum balances, and will even let you open accounts for specific sinking funds such as christmas or a new bicycle for your kid.