IS YOUR RAINY

day fund running dry? You're not alone.

Some 63% of Americans admit that they don't save enough, according to a Pew Research Center 2007 Social Trends Report. And 36% say they often or sometimes spend more money than they can afford.

Even if you're spending too much and saving too little, you can still attain financial stability. First, eliminate your credit-card debt (and cut up your credit cards) and start building an emergency savings stash that covers three to six months of living expenses should you lose your job or become ill. Then, focus on saving for retirement and for your children's college education.

Here are some easy ways to put more money in the bank.

1. Open an online savings account

If your savings account isn't earning 5% interest, then it's time to transfer your money to a high-yield savings account. Brick-and-mortar banks offer an average interest rate of just 0.46% on their savings accounts, according to Bankrate.com. Meanwhile, online banks such as

HSBC Direct

and

Emigrant Direct

have an annual percentage yield of 4.5% and 4.75%, respectively some of the highest rates out there.

These accounts let you withdraw money penalty-free whenever you need it. To open an account, you'll need an existing checking or savings account to link to before you register online.

Savings: Put a $1,000 deposit in an online bank account with a 4.75% rate and you'll have $1,047.50 in one year and $1,590.52 after 10 years. To grow your savings even faster, sign up for an automatic monthly deposit that will regularly deduct money from your checking account and transfer it to your online account. Putting just $20 a month in your account can add up nicely over time.

Read our story for more online savings-account perks.

2. Take advantage of debit-card programs

If you've ever had an overflowing coin jar and have taken it to the bank, then you know that nickels and dimes can add up to big savings. Bank of America's "Keep the Change" program takes it one step further. When customers use their debit cards, purchases are rounded up to the nearest dollar, then Bank of America puts the "change" into an interest-earning savings account. For example, a $5.45 purchase would be increased to $6, with the extra 55 cents automatically deposited into your savings account. During the first three months, Bank of America will fully match these roundups and will then pay a 5% match thereafter. (Maximum annual matches are $250.) To qualify, you'll need a Bank of America Visa check card and a checking and savings account.

Savings: If you use your debit card 20 to 25 times per month, which is the average amount, according to Bank of America, and the average roundup is 50 cents per purchase, you can save $120 to $150 a year.

Read our story for more on debit-card programs.

3. Make the most of your 401(k)

Before you deposit money into your 401(k), find out if your employer matches contributions. If they do, take advantage of it to the fullest extent. If your employer matches 5%, then (if you can afford it) allocate 5% or more of your paycheck to the 401(k). After all, a company match is free money, and shouldn't be passed up, says Michael Rubin, author of "Beyond Paycheck to Paycheck."

Also, when you're picking the investments in your 401(k), make sure you're diversified with funds that have domestic and foreign stocks and bonds. As you approach retirement, move from aggressive investments such as high-growth tech funds to more conservative ones like bonds. One more thing to keep in mind is that the earlier you enroll in a 401 (k), the better off you'll be when you retire.

Savings: A 25-year-old who contributes $300 per month to his 401(k), assuming a 6% return and a company match of up to 6% of his salary, will have $920,142 at age 65. But the person who starts at 35 will have just $470,043 by 65.

Click here for more ways to get the most savings from your 401(k). Or click here to watch a video on saving for retirement.

4. Save for college with a 529 plan

Over the past five years, college tuition rates have jumped an average of 5.9% annually, according to the College Board. Should tuition continue to climb at that pace - which some experts predict will happen in 18 years, four years of private college education will come with a stunning $350,000 price tag.

A 529 plan can be your saving grace. This tax-advantaged investment vehicle can help cover many college costs, including tuition and fees, book supplies and a limited amount for room and board. Most plans offer five to 15 investment options, including age-based portfolios that invest in stocks or bonds based on the child's investment horizon. Ideally, parents should begin investing from the moment their child is born, says Doug Chittenden, vice president of product management at TIAA-CREF.

Savings: If parents of a one-year-old child contribute $200 per month, then assuming a 6% tuition inflation rate and a 6% rate of return the account will have $91,187 when the child turns 18. But if parents start contributing when the child is 11, the total balance shrinks to $24,766.

Click here for tips on picking the right 529 plan. And crunch some numbers here to see how your college fund will grow. Or watch our video for more college savings tips.

5. Cut your tax bill

Each year new tax credits become available that can help you save hundreds or even thousands of dollars. For example, last year two residential energy credits debuted, one of which included electric heat pumps and insulation materials that reduce heat loss or gain. That credit alone carried a lifetime limit of $500.

Typically, new tax credits are determined at the end of the year, so make sure to ask your accountant for updates. Here are some to consider in the meantime. The credit allowed for adopting a child increases to $11,390 in 2007, according to Theodore Lanzaro, managing partner at Shelton, Conn.-based Lanzaro CPA. That's up from $10,960 in 2006. (This credit phases out if you have a modified adjusted gross income between $170,820 and $210,820.) In addition, earned income credit amounts are expected to increase to $428 if you don't have a qualified child and $2,853 if you have one. The credit jumps to $4,716 if you have more than one child.

Another tax savings tip: Invest in a tax-deferred Individual Retirement Account, or IRA, where saved money and earnings grow tax-free until withdrawal.

Savings: At age 30, you start putting around $300 per month into an IRA that assumes a 6% average rate of return. "After 35 years...you would literally be retiring with a million dollars in your account," says Lanzaro.

Click here for more on IRAs.

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