Smart Savers If these five real people found relatively painless ways to save more and spend less, you can too
By Joan Caplin; Tara Kalwarski; Amy Feldman

(MONEY Magazine) – A little more each month Tara Brettholtz, 26, Clifton Park, N.Y.

A sales consultant at a financial services company, Brettholtz became eligible for her 401(k) plan 2 1/2 years ago. She started out contributing 3% of her salary; as she paid off credit-card debt, she was able to put away more. Her strategy: to build gradually--adding 1% one month, 2% another. Sometimes the monthly contribution went up only $15 or $20. She's now up to 17%--but says she never felt the effects. "It's like dieting," says Brettholtz, who has completed training as a financial adviser. "If you try to completely change your life in one day, you'll fail."

Making trade-offs Amin Khair, 36, Queens, N.Y.

Khair, a network administrator for Human Rights Watch, is saving for both retirement (he puts away $200 a month) and a home by keeping close tabs on his budget. He says that growing up one of eight children in Khartoum, Sudan, instilled a willingness to make certain trade-offs. To keep to his budget, Khair reduced his nights out to just one or two a week and decided to live in an inexpensive Queens neighborhood instead of pricey Manhattan--despite an hour-long commute. "To me, it's all about how you budget your money and time together."

The refi game Jeff Linihan, 28, St. Louis

Only a year after graduating from law school in 2000, Linihan had saved more than $50,000 for a down payment on a house. These days he's focused on saving for retirement--but the house is still part of the plan. Linihan recently refinanced for the second time. Together, the refis have lowered his rate by enough to cut his monthly payments by a third. Those savings now reside in his 401(k) account.

The budget system Joe Luisi, 36, Mechanicsburg, Pa.

Luisi's early-retirement savings system is simple: Allow yourself a set amount to cover living expenses, pay off bills in their entirety, put whatever is left over into savings and investments. The impressive part is that even when his salary as a loan officer increased, he didn't boost his budget. He's taken the difference and purchased four fixer-upper rental properties, two of which he's already paid for in full. "I do what I have to do now," he says, "so I can do what I want to do later."

Working from home Susan Nielsen, 41, Spokane

Revenue at Nielsen's corporate branding firm, Strategic Niche, fell last year. So when push came to shove, she decided to do without a room of her own--a $600-a-month office--and moved her business into her home. With the $7,200 she's saved so far, Nielsen plans to start maxing out her IRAs again (she has both a SEP and a Roth). She also purchased a new laptop for work. Business is starting to look up since she made the move. Her latest concern: "I have to be careful about how much I bite off." --Joan Caplin, Tara Kalwarski and Amy Feldman