Have trouble saving? Take these tips

Here are five painless ways to free up dollars to sock away, whatever your budget.

By Berkeley Rice
Senior Editor

After scrimping through medical school and residency, many doctors starting out in practice feel they deserve everything right now. So they buy the best house on the block and a BMW, and they take expensive vacations. Saving money takes a back seat, particularly if they're still paying off sizable medical school loans. Spending then becomes an intractable habit, and saving doesn't.

That's why, whatever your income and debts, it's not too soon to begin investing for retirement and other long-term goals. Financial planners recommend setting aside 10 to 20 percent of your earnings each year, including retirement plan contributions. But even if you manage to save only 5 percent, it's a start. The sooner you begin, the faster your nest egg will build, because of compounding. In other words, the very age when you think you can't afford to save is the time when saving can do you the most good.

So how will you come up with the money? Here are five ideas. As you'll see, we're not bothering with nickel-and-dime stuff like clipping coupons for groceries or getting half-price movie tickets. We're suggesting steps you can take to save hundreds or even thousands of dollars, without depriving yourself.

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