According to the latest article on Y!
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Here's the real kicker: based on recently published research, the average savings rate really should be 16 to 20 percent of household income... not 10 percent.

1

Almost everybody can identify 5 percent in cash flow savings just by paying attention to expense details. Use an online budget planner to chronicle every dollar that you spend.

2

Take a moment to think about the most important things in life to you. These are your values. For most people, top tier values include relationships, family and special experiences. They almost never include “stuff” (i.e. tangible items). Humans are hard-wired to be attracted to shiny new things, but that attraction doesn't last and the item is soon forgotten.
3

Every time you are faced with a spending decision, take a short pause to ask yourself, "Is having this really important to me? How important is it?"

4
The last trick is to change the perspective with which you view each purchase decision. Our tendency is to view expenses in comparison to our annual personal income: "I make $40,000 a year. This is a $20 purchase. Twenty bucks is nothing compared to $40,000, so the cost is insignificant." Or, "The cost is zero and I want it."

When your brain does the cost-benefit analysis - you end up making the purchase.