As many people have learned during these recession time, saving real cash is the best way to make a purchase and the safest way to stay out of debt. While many people understand that saving cash is for the best, many still have great difficulty find money to put away when they need a new car, have to pay for college, or even saving for retirement.

In the 1970′s, Americans managed to save more than 10% of their disposable income compared to the 0.4% saved in 2005. In 2009, we’ve kicked it up a bit and saved a decent 5.7 % of our disposable income. It seems everyone is having difficulty saving for a rainy day. Since many are already on a strict budget with little to nothing left over, it seems that putting such little money aside each week is pointless. Plus there is always the possibility an unexpected emergency will arise. But experts suggest that you in fact go back to your budget and get rid of what it is you really don’t need. The only other alternative is to make more money.

The rule of thumb for your income is as follows:
50% – used for your necessities
30% – used for your wants
20% – used for your debts and savings accounts

Getting money to save will take discipline and a desire to succeed at saving money. Different savings goals need different types of attention. Here is how you can start:

Emergency Fund
Financial experts agree that having an emergency backup account that has at least 3-6 months worth of living expenses in an account is the place to start. Before saving for any other goal, you need the security of an emergency account that will help the family get by in the event of an emergency, such as medical problems or a job loss or other unexpected but true emergencies.

Short-Term Savings Goals
Short term savings goals can be established for things such a family vacations, new furniture, or a new car. You need to figure out how much money you need to save each week by dividing the purchase price into the number of weeks you have to save.. Say you are going on a family vacation one year from now that costs a total of $3000. You can determine the amount you need to save each week will be around $58. That money can be put into a interest-earning account and regular contributions need to be made in order to stay on track. You may also look into CD’s and money markets to increase your earning potential over time as you save.

Mid-Term Savings Goals
Mid-Term savings goals are similar to short-term savings but require the individual to save for a longer period of time. These savings will go towards college expenses, wedding preparations, a downpayment on a home. Depending on what it is you are specifically saving for, you will need to explore your options. For instance, a 529 savings plan would b a good investment for the college tuition portion of your mid-term goals. Safe avenues for savings such as CD’s, money markets, and savings accounts are all good places to stash your cash for when you need it. Purchasing stocks to fund mid-term goals ma not be a great way to increase your capital.

Long-Term Savings Goals
Long-term savings generally involve retirement funds. Experts agree that in order to reach a comfortable retirement is to invest a certain percentage amount into stocks in order to keep the pace with inflation. Recently tumbles in the stock market have shaken some and those individuals may prefer to keep their retirement savings in the traditional 401(k) and similar plans. You may consider checking out an IRA if your employer does not offer you a retirement savings account. A goal of 10% of your gross income is recommended at the target number for your retirement savings plan.