The first step toward financial security is not necessarily increasing your income --- unless it is at or below the poverty level. Actually, the first step toward financial security is spending less than what you earn. This is because it takes about $2 of your paycheck to be able to save $1 for yourself. The second dollar goes to income taxes, retirement, health insurance, dental insurance, disability insurance, and at some companies optional life insurance.

So if you want to have $100,000 saved for retirement, you will need to earn $200,000. Granted your savings will accrue interest, but at today's rate of one percent and even that scrawny amount being taxed, it will take time to accumulate. The fastest way for your savings to accumulate is for you to take that first step toward financial security and spend as little as possible so that you can save more of your hard earned paycheck.

The best way to change your spending habits is by following these five steps:

1. Do I really need it? Before putting anything in the shopping cart ask yourself if you absolutely need that item. In other words, have you been getting along OK all this time without it? Most of the time you will quickly realize that the expense is unnecessary. However, if the answer is yes that you need this item, then proceed to #2.
2. Is there something at home that I can use to get the job done? Many items can be multi-purpose. What can I use or recycle so I won't have to spend any money? Remember, not spending money unnecessarily is the first step toward financial security. However, if there is nothing at home that will work, then proceed to #3.
3. Can I borrow the item from a friend or neighbor? Do one of my relatives have something that might get the job done? Is it available on Freecycle? If the answer is no, that you cannot find anyone who has whatever it is that you want to buy, then proceed to #4.
4. Can I rent this item from a company in the yellow pages? Can I purchase this item used? Check the classified section of your local newspaper, yard sales, church rummage sales, clearance outlets, and online websites such as Amazon and Ebay. This way you will be able to spend less and save more as you work toward financial security. However, if you are not able to find the item used and need to buy it new, then proceed to #5.
5. Did I comparison shop? Do I know which off-brands are made by which name-brand manufacturers? Have I considered shipping and handling charges? Is there a hefty re-stocking charge if I am not happy with my purchase?
   

These five steps can save you many thousands of dollars throughout your working career. When you open your wallet to pay $100 for a purchase, you will have to earn $200 to replace it. Therefore, spending as little money as possible really is the first step to financial security.

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