1. Live within your means. The amount of money left over for saving is a direct result of your chosen lifestyle. Your lifestyle impacts you now and in the future, since you'll probably want a similar lifestyle after retirement. Bite the bullet now and ruthlessly cut your expenses. Forget about designer clothes, morning stops for coffee, dinners out every evening, and expensive vacations. Reprioritize your life and learn to live with less. Keep cutting until you can save at least 10% of your gross income.
   
   
2. Invest those savings. Your portfolio's ultimate value is a function of two factors -- how much you save and how much you earn on those savings. Become comfortable with various investment alternatives, so you'll feel comfortable investing in more aggressive alternatives with higher return potential. Even small differences in your long-term rate of return can significantly impact the ultimate size of your savings.
   
   
3. Avoid debt. You'll probably need debt to purchase large items like a house, but don't let debt sabotage your financial goals. Resolve not to purchase anything on credit this year. Any income going to pay interest can't be used for saving. Strive to eliminate all debt except your mortgage. Start by paying down the debt with the highest interest rate. Once that is paid in full, start paying down the debt with the next highest interest rate, continuing until all your debt is paid in full.

For many, these three principles will represent a significant change in their way of life. While it may be difficult at first, faithfully following these principles can make a major difference in your financial progress.