Howard Dvorkin, founder of national nonprofit Consolidated Credit Counseling Services Inc., said the term is a "very, very powerful financial planning tip."

"As Americans, a lot of us spend every dime we make," said Dvorkin, author of "Credit Hell: How to Dig Out of Debt."

"At the end of the month, there's nothing left to put into savings. The idea behind (pay yourself first) is to take a portion of your net pay -- and it doesn't need to be a substantial portion -- and put it into a separate savings account" before you have a chance to spend it.

To make this work, however, you need to create a budget and figure out how much you can realistically save while still meeting all your financial obligations, said Maureen Hankins, director of the El Paso YWCA's Consumer Credit Counseling Service.

By creating a budget, you won't set a savings goal so big that you can't meet it, Hankins said.

Set a budget, track your spending and then set a monthly savings goal that you pay to yourself before you pay your bills, she added.

"If you have anything left over after that, you can put that into savings, too," Hankins said. "Some people think that budgeting is boring. Well, it is boring, but it's a step you have to take. Some people can quite successfully budget in their heads."

During this deep global

recession, Americans are becoming more concerned about saving, according to the U.S. Bureau of Economic Analysis.

The U.S. household savings rate has increased from 0.4 percent at the end of 2007, according to the bureau, to 4.2 percent in March 2009.

Savings rates always "pick up during a recession, but the rebound has been particularly pronounced this time around," said Greg McBride, senior financial analysis with Bankrate.com.

The easiest way to pay yourself first is through direct deposit, McBride added. Have a portion of your paycheck directly deposited into a separate savings account each time you get paid, he said.

The biggest barrier to saving is "not establishing the habit of paying yourself first," McBride said.

Direct deposit

If you try to save what's left over at the end of each monthly, chances are there won't be anything left to save, he explained.

By using direct deposit to help with your savings goal, you're automating the process, McBride said.

You can also boost your savings efforts by putting any savings you realize from using coupons or going to a sale into your savings account, McBride said. Empty your pockets and put any loose change into savings, he added.

"Nothing will make you sleep better at night than knowing you have some money set aside for the unexpected," McBride said.

Emergency fund

Most experts recommend that you have three to six months' worth of expenses in a liquid savings account that you use as an emergency savings fund.

The idea is to have a cushion in the event you get hit by a job loss or other unexpected expense, experts say.

Westsider Maria Ruiz said she has part of her paycheck put into savings each time she gets paid. She's used this method to build an emergency fund.

"Everybody needs a little bit of savings," she said. "You never know when you'll need it. Everything is so uncertain, you never know when an emergency will come up.

"The people I talk to say they need to be more careful with their money (because of the recession). People are traveling (for vacation), but they're not traveling as far. People are learning to be more careful with purchases. They're thinking twice about purchases and deciding if it's something they really need or just want."

El Paso certified public accountant Steve Rash said paying yourself first is "just a commitment that someone makes to set aside a predetermined amount of money before they pay their bills.

"If you approach it from that perspective, you'll have a better chance of staying on target with your savings goals," Rash said.

Set goals

The key to saving is to set a goal, Rash said, whether that's saving for a comfortable retirement, a child's education or even a new car.

Analyze your spending habits, find places you can spend less and then apply that money toward meeting your goals, Rash said.

"If you adopt a pay yourself first attitude early in life, you will be in a better position to accumulate wealth than if you put it off and adopt it later," Rash said.

When you get a raise or a bonus, put that money into savings and live on what you were making before, Rash said.

Mike Sullivan, education director with Take Charge America in Phoenix, said they key to saving is to spend less than you earn and live below your means.

"It takes a lot of discipline," he said. "People that have that discipline, they only spend what they have to, when they have to.

"You don't buy things when you can, but when you have to," he said.

A good example is technology, such as MP3 players and televisions, Sullivan said. The earlier you buy a new version or product when it comes out, the more expensive it is, he said.

David Burge may be reached at dburge@elpasotimes.com; 546-6126.

Kick-start savings --Pay yourself first. Set a budget, determine a realistic monthly or bimonthly savings goal and pay that to yourself before you pay your other bills.

--Find a high-yielding savings account to stash your savings in. Bankrate.com has a free search engine that can help find the right one for you.

--Analyze your spending habits and find places you can cut back on. Use the resulting savings to kick-start your savings plan.

--Learn the difference between wants and needs.

--When you get a raise, bonus or tax refund, put the money into savings and continue to live on what you made before.

--Collect your loose change and put that into savings. It adds up quicker than you think.

--Comparison shop, especially for big-ticket items.

--If you get paid every two weeks, twice during the year you'll get three paychecks during a month. Put as much of that extra check into savings as you can.

Helpful sites --www.bankrate.com: The site has a free search engine to find top-yielding savings accounts and calculators to help you jump-start your savings program.

--www.takechargeamerica.org: The site has free articles and calculators to help you manage your money better. Ask Educa tion Director Mike Sullivan a question via the Budget Doctor feature and you'll typically get a response within 72 hours.

--www.consolidatedcredit.org: The site has free articles and downloadable educational brochures on a wide range of financial topics to help you manage your money right.

--www.valueyourmoney.org: This site contains information about establishing an emergency fund, setting up a savings account, investing and more.

--El Paso YWCA's Consumer Credit Counseling Service offers debt-management services, credit counseling, housing counseling and personal-finance education classes. The service is also available in Las Cruces and Alamogordo. Information: 577-2530 or 356-2227 in El Paso; 575-532-1222 in New Mexico.