Recently, I asked five friends this question: How do you save money? "Buying things on sale" was the most common answer. "Bringing lunch to work," and "Finding the cheapest gas" were other responses. But only one person got it right: "I put it in a safe place." Bingo!

Cutting expenses is the way to spend less so you have money to save, but unless you are actually putting it aside for some future use, you're not really saving at all. You're only spending less.