Pay yourself first. 
When your income (wage, salary or benefit)  gets paid into your account,  deposit a fixed amount into your savings account straight away.  Make it $5 or $10 then later increase to 10 or 20% of your pay if possible.  Don't try to save whatever is left at the end of the month.  Chances are there won’t be anything left.  Decide how much you're going to put away for a rainy day.  Set up an automatic payment from your paycheck to your savings account. You can do this online or call the bank for help. Example:  you get $250 a week put aside $10 a week and you end up with $520 a year  that’s $1,040 in 2 years  - that’s only for putting away $10 a week!  How simple is that!

Have a piggy bank 
A glass jar or tin can will do. When you get home from school, work  or after you’ve been to the shops on the weekends place all “loose change” in your “piggy bank”.  It won’t take long and you will soon have $50 bucks or more. If you get a tax refund or bonus place it in the “piggy bank” as well.  After six months count your “loose change”  and ~~Surprise! Surprise!~~  you will be amazed how much money you have actually saved!  Deposit this in the bank as an emergency fund.  Do this year after year and you will find it so easy to put money aside.

UNLOAD YOUR DEBT
Even if you have debt try to put something into your savings each month. When you're debt-free take the money that was going toward debt and put it toward your savings. 

Pay off your credit cards.
You may have heard that you should first pay off the credit card with either the highest interest rate or the lowest balance. Also consider tackling any card that's near its limit, because maxing out cards hurts your credit scores and can trigger penalties. Put as much as you can toward the first debt. When that amount is paid off, take the total amount you were paying and add that to the minimum payment of your next debt.

Cut up your credit cards and pay with cash.
This forces you to spend only money you actually SEE and have in your pocket. Keep one card ONLY for emergencies. If you think you cannot control yourself then ask someone to keep it for you. Pay bills as soon as they come in or set up and pay through automatic payment. Most bank cards give a discount for prompt payment.

Where does it all go?
The less you spend, the more money you'll have for savings and debt reduction. Take a hard look at your expenses. Depending on how much you want to save, you may need to make some difficult decisions on cutting down your spending. Think about what's truly important to you, and make cuts you can live with – give up your Starbucks latte a day or cable TV perhaps.

Reference:www.moneycentral.msn.com/SavingandDebt/SaveMoney/Your5MinuteGuideToSavingMoney

SPEND LESS
Learn the difference between needs and wants. The key to controlling spending is distinguishing between the two. Food, shelter and transportation are needs; shopping, jewellery and driving a $40,000 SUV are not. Beware of bulk buying Temptations lurk in every aisle of a store, so you'll often buy more than you need. Buy only what you need or if possible stock up on specials  Example: soap, shampoo, toilet cleaners etc.

Don't get hooked on big-name brands buy whatever is on sale. Buy store brands when items are on special as mentioned above.  Paper products (tissue or toilet paper) in particular are available at half the price.

When cooking use less salt, sugar and oil. You'll save money and be healthier.

Take your lunch to school or work When you make dinner, pack a serving directly into your lunch container to save time the next morning.

STASH IT AWAY
Once you have a savings plan, open an account that's specifically for savings. Banks offer basic, low-interest savings accounts and higher-interest money-market accounts. Here are other places to stash your money:

• Kiwisaver  for retirement allow your money to grow faster than at a bank savings account. Your employer and the government matches your savings dollar for dollar, that's free money, so it pays to contribute enough to get the full match.
• Online savings account offer a higher interest rate than a regular bank account, and you often can get a premium interest bonus on top of the regular interest rate ONLY if you do not make any withdrawals in a given month.
• Money market funds are investment opportunities with low-risk securities. 
• Certificates of deposit mature and pay interest in 30 days or more, usually with a higher interest rate for longer terms.

For your short-term savings look at money market funds, CDs and savings accounts. Kiwi Saver  have penalties for taking out money before retirement. Avoid temptation: don't get debit cards that give you instant access to your savings.

Every little bit adds up
Saving money takes time and patience, but a little boost never hurts. These tricks can help you set aside money in ways you'll scarcely notice:

• Try this twist on the traditional change jar: Set aside certain denominations, such as $1, $2, or $5 whenever they make their way into your wallet. Put the coins into a jar as you get them. They'll add up fast.
• Round off pay per hour Save the "change" from each hour. Deposit that amount into the savings account.
• Save your raise When you get a raise at work, increase your savings and retirement deposits by the same amount. You won't notice the change, but your savings account will.

Reference: moneycentral.msn.com/SavingandDebt/SaveMoney/Your5MinuteGuideToSavingMoney