You'll be more likely to save money if you make it a priority. Sit down and figure out what you'd like to save money for − retirement, a house, car, college, dream vacation − and how much it will cost. Then make your plan:

• Set a timeline for when you'd like to reach your goal.
• Set a schedule by dividing the total goal amount by the number of weeks, months or pay periods between now and your goal date.
• Be vigilant by treating your savings contribution just like any other must-pay expense, such as rent or groceries.

While it may seem difficult sometimes just to make ends meet, chances are you have extra money you didn't even know about. Here are some ways to find it:

• Keep track of everything you spend for a week or month. You might be surprised what you're buying, and what you can do without.
• Make purchases with cash. This can help you stick to a budget and avoid impulse purchases. Simply decide ahead of time how much you want to spend and then set aside that amount in cash before you go shopping. You could also try placing an order for grocery pick up as a way of curbing impulse purchases. 
• Lower your bills. Many creditors will give borrowers a lower interest rate if they're asked. Also, conserving electricity and gas usage can make a big difference.
• Rank your nonessential expenses. Keep the ones you like the best and cut the items on the bottom of the list. This could include canceling unnecessary or underutilized subscription services.
• Pack a lunch. Or cook more dinners at home. Eating out at restaurants can eat up a lot of money that could be saved.

You're probably inclined to pay everyone else first − whether it's your landlord or your grocer or the electric company. But it's vital to start paying yourself first by saving money. Once you've made a contribution to your financial longevity and well-being, then you can divide up your money to cover everything else. Don't worry. You'll more than likely have plenty left over to cover everything you need.

In fact, most banks make this easier. You can have them automatically transfer funds from your checking account to your savings account, money market, mutual fund and other accounts. You might also check with your employer. Companies will often deduct savings from paychecks if asked.

When setting up a savings plan, it's a good idea to think about more than just how much money you'll need in the future. You should also be looking at ways your money can earn more money for you.

Fortunately, this is a lot easier than it sounds. In fact, just about the only way you can keep from earning more money with your savings is to put it under your bed or in a safe. If you take your money to a bank you can guarantee that over time you'll make more money, and you won't have to do a bit of work for it.

That's because banks offer interest. In exchange for opening an account and giving the bank your money, the bank agrees to increase your money by a certain percentage every year.

For instance, if you were to take $100 and put it in an account that offers 6% interest, by the end of the year the bank will have given you six dollars. So, without doing anything, your savings has grown to $106.

Best of all, it's risk free. The federal government guarantees your deposits. Even if the bank goes bankrupt, you'll get your money back.

At first, interest might not seem like a lot of money. But it grows over time. And it can add up very quickly thanks to a powerful moneymaking tool known as compound interest.

Put simply, this is interest earned on interest.

Let's look again at that $100 in an account earning 6% interest. The $106 you have after the first year would earn 6% again the next year -- $6.36, or a 36 cent increase. After you add that to the total, you would have $112.36. And that new total will then earn 6% the following year -- $6.74, another increase.

As long as you leave the money in there, it will keep earning more. If you left that same $100 in a 6% interest account for 40 years, you'd have $1,028, and your annual interest earnings would be more than $50 per year.

One simple way to see the power of compound interest is through the "rule of 72." It's a formula for figuring out how quickly your money will double if left alone in an interest bearing account.

All you have to do is divide 72 by the interest rate. So if your rate is 6%, divide 72 by 6. At that rate, it will take 12 years to double your money.

Still not impressed? Sure, 12 years is a long time to double your money. But that's only if you put your money in once and leave it. If you keep contributing, your money will really grow.

Consider that 6% account one more time. If you were to put in another $100 each year for 40 years, you'd wind up with $17,433 and you'd be earning more than $1,000 in interest.

It really pays to start saving early and regularly.

Just as banks give, they can take away. If you're not careful, penalties and fees can cut into your interest. Sometimes they even eat into your actual savings. So it's important to read the fine print when you open an account so you can know where the potential pitfalls might lie.

Watch out for:

• Fees, charges, and penalties. These are usually based on minimum balance requirements, but they can also be attached to transactions such as ATM withdrawals and online transfers.
• Interest thresholds. Some accounts require minimum balances before they even begin paying interest.
• Variable interest rates. Some accounts, most often money-market accounts, will pay different interest rates for different size balances, with higher balances earning higher rates.

Not all savings accounts are the same. Different banks offer different interest rates. And individual banks typically offer a number of savings accounts options to choose from.

Before opening a savings account it's a good idea to figure out how you'll be using it. Ask yourself:

• How long you'll be keeping your money in the account.
• How often you'll want to withdraw money.
• How much money you'll keep in the account.

All of these factors can have an impact on how much interest you can earn. A simple rule to keep in mind is that time is money. The longer you're willing to leave your money alone in an account the higher interest you're likely to earn. Similarly, banks tend to offer higher interest if you're willing to keep a minimum balance. These can range from $100 to thousands of dollars.

While there are many different savings options available, they all fall into four main categories.

• Basic bank savings accounts offer the lowest interest rates, usually about 2%. They have few restrictions on access to your money, and they tend not to require minimum balances.
• High yield savings accounts are like basic accounts, but they have more restrictions on how often withdrawals can be made and typically require a minimum balance. These accounts may offer 3 or 4% interest.
• Money market accounts are like high-yield accounts, but they're tied to federal market indicators, such as the prime interest rate.
• Online savings accounts are a lot like basic bank accounts, but they offer higher interest rates because they operate online and don't have the overhead that standard banks have.
• Credit Unions. These are like banks, but they're owned by their customers. They tend to offer higher interest on savings.

If you don't mind leaving your money alone for a longer period of time (from several months to several years) consider taking out a certificate of deposit, or CD. These often offer the highest interest of any savings option a bank allows.

Unlike regular bank accounts, you can't withdraw your money whenever you want; not without paying a steep penalty. But they come with no risk and no fees.

There are several kinds of CDs:

• Stock-indexed CDs are based on the stock market.
• Callable CDs have higher rates and are long-term, as long as 10-15 years. However, the bank may "call" the account if interest rates drop.
• Global CDs are tied to currency rates.

Keep an eye out for promotional CDs. Banks sometimes offer these as a way to lure new customers with high interest rates.