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Published on April 25, 2008

Looking for some painless ways to increase your savings? Here are tips from three Washington-area financial experts.

Christine Fahlund, senior financial planner at T Rowe Price in Baltimore, Maryland:

The sooner you start, the more time your money has to grow. Enrol in your company's 401(k) plan and/or sign up for a programme in which money from your paycheque or bank account, often as little as US$50 (Bt1,570) a month, is automatically deposited into a savings or investment account.

If your employer matches contributions to your retirement plan, be sure to contribute at least enough to get the full match. Contribute as high a percentage of your salary as you can, and increase it two percentage points a year.

Small amounts can add up. Take the pocket change you accumulate, or the money you save by brown-bagging it, and deposit it into your account.

Pay off debt as quickly as possible to avoid paying countless dollars in interest, and apply those dollars to your savings programme.

Putting a bigger down payment on a car or home will give you smaller monthly payments and keep money in your pocket.

Dennis Gurtz, a principal of Gurtz, Yurachek, and Associates with Ameriprise Financial in Bethesda, Maryland:

If you keep your housing, transportation and education costs under control, you have a good chance of living within your income, which is the most "painless" way to save. Also try these:

lContribute to your deductible retirement plan (401(k), 403(b) or TSP), at least to the maximum matched by your employer, but ideally more. This gets you the match and tax savings.

lEvery time you get a raise, spend only one third of it. Another third goes to new savings and the final third goes towards taxes. Over time, this will really compound.

lMake a game of saving money. See how much of your daily spending you can cut out, and price-check all purchases. Not buying a gourmet brand cup of coffee and taking a bagged lunch to work or putting a boxed frozen lunch in the office microwave can easily save $10 a day.

lDon't forget to ask whether discounts are available (coupons, AAA, AARP, etc) or just negotiate.

Gregory Sullivan, president of Harris SBSB in McLean, Virginia:

Start with your work retirement programme. Why? You don't pay taxes on that money until you take it out. In addition, most companies provide a "match", typically between 3 and 6 per cent of your pay. That's free money in your pocket. If you don't have a retirement plan at work, set up an IRA-type plan that takes deposits from your checking account.

If you don't need the current income from your investments, put your dividends to work for you. Most investment firms give you the option to reinvest your dividends back into the stock or investment that paid them. With the magic of compounding, these small reinvestments will work in your favour over time.

Use a flexible spending account, which allows you to pay for prescriptions, doctor visits and other health-related items with pre-tax dollars.

Immediately save your tax refund or use it to pay off credit card debt.