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WORK & MONEY HOW TO SAVE -- EVEN IF YOU THINK YOU DON'T HAVE ANY MONEY Published August 26, 1996 Other Columns by Beth Kobliner

Many of us find that our money seems to vanish from paycheck to paycheck; the idea of saving money seems like a pipe dream. But most of us can save money, simply by changing the way we spend. One way to get a better handle on where your money is going is to keep a short-term "spending diary." Just as dieters write down how many calories they consume every time they have a meal, keep track of every dime you spend over the course of a week or two. Although this sounds like a tiresome thing to do, people who have done it say that it actually works. For example, let's say you find yourself spending $5 a day on lunch out. That kind of spending may not seem like much, but it adds up to more than $1,000 a year! You can probably save at least $500 a year just by bringing your lunch from home. You don't need to cut out everything you enjoy, but you do need to set priorities. Once you find out where your money is disappearing to, you'll be in a much better position to change your spending habits -- and with the money you free up, you can begin to save for your longer-term goals. Beth Kobliner is the author of "Get a Financial Life: Personal Finance in Your Twenties and Thirties," published by Simon & Schuster in May. In 1994 and 1995, Kobliner was selected by TJFR Business News Reporter as one of the country's most promising financial journalists under the age of 30. Kobliner is currently a contributing writer for MONEY magazine and is a regular commentator on NPR's "Sound Money." She lives in New York City with her husband and their daughter. © 1996 Beth Kobliner, All Rights Reserved