Question: I just turned 40 and realized that I don?t have much savings at all. I?m single, but have been supporting my mother all these years. My salary just goes to my expenses and my mother's. I don?t have any siblings and my father already passed away. How can I start saving and what?s the best strategy to do it? ? Donna H.

Answer: It?s true what they say?life begins at 40. See, now that you?re 40, you?d like to turn over a new leaf and start saving.

It?s never too late to start saving, Donna, although it?s better to do it as early as possible. That?s because time and compound interest will both work to make one?s savings grow even faster, snowballing into a nice sum in the future.

All these time you have been spending your salary on yourself and your mother. To start saving, you have to have a different mindset: From now on, treat savings as an expense, one that should be on top of your list, even before you spend on necessities like food and transportation.

This is what financial experts have been preaching for the longest time: Pay yourself first. That?s the savings you will tuck away every pay day for your future. And you have to do it as soon as you get your pay; otherwise, there may not be enough money left at the end of the month for you to save. So before you spend, save first.

Why save? It?s to make sure you?ll have a fund to dip into should something critical happen in the future, such as a job loss or an illness. It?s also necessary to save so you will have enough for retirement.

You?re single?this makes it easier to save. That?s because you won?t have to save up for what most parents do: children?s education, which can be costly from preschool to college. But the fact that you support your mother means that you have to save for two.

We don?t know how strong your mother is, but should she still be strong, broach to her the idea of doing some money on the side. If she loves to cook, would she like to sell her home-baked goodies? If she enjoys crocheting, she may light up at the idea of selling her crocheted items at a neighborhood bazaar. Whatever her passion is, find out if there can be a money-making side to it. She doesn?t need to go out and work for someone else; something to work on at home will be ideal. Any extra income she will earn will definitely be good for her in the long run, and slightly ease the burden off your shoulders to provide for her 100 percent. This will also be good for her self-esteem.

There?s a strategy to saving well. Below are more tips for you:

1. Open a separate bank account for your long-term savings. This will immediately make your savings a separate fund from the savings or checking account that covers your day-to-day expenses. Doing so will safeguard your savings from being raided for living expenses.

2. Deposit 10, even 25 percent of your pay check in this account every pay day. If you can, arrange for transfers to be made to your account for savings electronically through online banking or phone banking. This will save you time and effort and won?t give you an excuse not to do it.

3. As soon as you have enough in your account for savings to meet the minimum required investment, transfer the funds to a pooled fund such as a mutual fund or unit investment trust fund. A mutual fund is handled by a financial company, while a UITF is run by a bank. In both these funds, the fund manager gathers small amounts from a number of investors and invests these all together in agreed-upon forms of investments such as bonds, stocks, or a mix of both. It?s good to invest in these pooled funds as they will make your savings potentially grow more than if it were to stay in your savings account in the bank. True, there?s a risk involved, but the potential gains may be worth it.

4. Get enough insurance. Since you?re the family breadwinner, you have to make sure your mother will be taken care of should something happen to you. Talk to an insurance agent about getting life insurance for you, with your mother as beneficiary. Also inquire about getting health insurance for both of you so your savings will not be wiped out should any of you get sick and need hospitalization.

5. Aim to have enough by retirement. Not only should you be diligent about saving; be extra vigilant about spending as well. Cut down on costs and live simply. Since you are now 40, you have about 20 to 25 years left to work. You have to make sure you?ll have enough by age 60 and beyond to support your lifestyle by then.

6. Find other sources of income. If you?re just relying on your day job, then it?s time to look for other means to augment your income. There are many things you can do. If you like plants, for instance, you may grow bonsais and flowering plants and sell these at a weekend bazaar. Or if you can teach, consider teaching a class on Saturdays. Use the extra income for your retirement fund.

Don?t be discouraged if people younger than you seem to be more financially stable than you are. As we said, it?s never too late to start saving. Just do so starting today.

(INQUIRER.net and Citibank invite readers to ask questions regarding financial matters. Send your questions to personal_finance@inquirer.net or comment through our personal finance blog called MoneySmarts )

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