Regardless of your age, how much or how little you already have saved, or how little you feel like you can save, it's never too late to start saving for your future. Every little bit - at every stage - can add up to a significant amount.

By applying savings toward your first financial priority you're going to:

1. build your confidence about managing your finances, and
2. invest to help create a more secure financial future.

Following is a suggested list of 10 smart places to consider applying your savings. Take a minute to think about your financial goals, to see where you could begin creating some savings, and then consider one or more of the following options for how to make your savings work for you:

• Pay down your debt. Did you know that paying off your credit card debt is one of the smartest financial decisions you can make? Most people would jump at the change to invest in something that pays an interest rate of 18, 19 or 21%. When you pay off your credit card debt it's like paying yourself back that much interest by not having to pay it to your creditors. So why not direct some savings toward paying down one or more of your credit cards? You could try tackling the credit card that carries the highest interest rate, and then when you have paid off that card, start making headway on paying off the next credit card you own that has a balance. Or maybe you want to boost your confidence by paying off another card that has a lower balance first, closing that account, and then working toward paying off another card. Read our "Debt: The Anti-Investment" article to learn more about why paying down debt is a wise investment in yourself and your financial future.
• Fund a college savings plan. Use some savings to open, or increase funding to, a college savings account for yourself, a child or relative. There are a variety of accounts such as 529 plans, UGMA and UTMA accounts that enable you to save for college and lower your taxable income at the same time. Learn more about your options to save for a college education.
• Begin saving for retirement. Open an Individual Retirement Account (IRA) or another retirement savings account. By law you can invest $4,000 tax-free in an IRA each year to use for your retirement, and an additional $1,000/year if you are 50 years or older. Regardless of how close you are to retirement, it's never too late to begin saving. Use our online retirement calculator to determine your retirement income needs and to see how your retirement savings can begin adding up to give you the kind of secure retirement you have always wanted!
• Increase your retirement savings. See if your employer allows additional employee contributions to your 401(k) retirement savings plan.
• Save automatically for emergencies. Check to see if your employer, credit union or bank offers an automatic savings plan. It can be much easier to begin saving on a regular basis if you make it automatic. You might be surprised to see how much you can begin saving when you authorize your bank or credit union to automatically withdraw a set amount from your paycheck and direct it to a savings account. If you're already having some money automatically deposited into a savings account, consider increasing that amount. You can use those savings as your emergency fund - an account where you keep enough money to cover 3-6 months' worth of expenses in the event of an emergency. Having an emergency fund can give you peace of mind if the unexpected happens and can prevent you from having to put everyday or one-time expenses on your credit card during an already difficult time.
• Examine your insurance. Review your insurance coverage (i.e. life insurance, health insurance, car insurance, long-term care or disability insurance, homeowners' insurance, etc.) and consider whether coverage is adequate for your current life situation. If not, decide what you need to do about it and create a plan for socking away some savings to afford the increased coverage costs.
• Check your PMI. If you are a homeowner and you have at least 20% equity in your home (meaning that you have paid down at least 20% of your home's appraised value), then you no longer need to maintain private mortgage insurance. If you took out a loan for more than 80% of your home's value (which was appraised when you purchased the home), your lender required PMI. In that case, you have been paying PMI since you began paying on your mortgage. Lenders are required to drop your PMI requirement automatically when you reach 80% equity, but sometimes that doesn't happen. Check with your lender to see if you are currently paying PMI and if you still need to. If not, cancel it and have that amount automatically redirected to a savings account instead of spending it.
• Lower your mortgage principal. If you are a homeowner, consider making one extra mortgage payment a year. You can do that by writing one additional check a year to your lender and writing "to principal" in the memo portion of the check so your bank will know you want to apply the entire amount to your principal. Or you can change to paying your mortgage biweekly. That doesn't mean you pay the full amount twice a month - it means that you just split your normal monthly payment in half. By making payments biweekly instead of monthly you will automatically make one additional payment a year which can take nearly seven years off your mortgage - and save you the interest you would have paid on that amount as well!
• Create a down payment fund. If you're not currently a homeowner, consider starting a savings account to accumulate a down payment to purchase a home. Visit our "Home Buying 101" section to learn more about the process of buying a home and how to make the dream of homeownership a reality for you.
• Create a "fun" fund. Why not put take some savings and create a personal "fun" fund to pay for those little extras like visiting an amusement park, going on vacation, going out to eat, buying birthday gifts, etc.? If you have kids or others that will share in the fun, let them in on your plan. By creating a designated fund for those expenses you can budget ahead of time to know how much you can realistically afford to spend, pay cash instead of using a credit or charge card -- and not be surprised by unanticipated credit card bills.

Taking just one manageable step can inspire you to take the next step, until you begin to see how a small amount of savings can make a big difference in the long-run!