2) SAVE TONS

Count Dollars Like Calories

Research has shown that maintaining a food diary helps even the most troubled dieters control their eating habits. The same is true for keeping a track of your spending. You will find most people having absolutely no idea where their money goes--particularly their cash. Tracking your expenses, whether you do it using a pencil and paper or a website or smartphone app such as Mint or Pennies, will surely transform your financial life.

More: 5 Ways to Reduce Vacation Expenses This Winter

Save Every Raise

The key to building a larger retirement nest is to live on less than you make. Remember, saving is earning. So whenever you get a raise in your salary, don’t spend it partying around with friends or doing mindless shopping, instead save it. Make this a rule: Every increase in pay comes with a commensurate increase in how much you're socking away.

Aim to save at least 10 percent of what you earn. If you cannot hit 10 percent, start by saving 3 percent, or 5 percent--whatever you can do. And if you can save more than 10 percent, then by all means do that too. Then watch that saving cushion start to grow. You'll be inspired to set aside even more.

Also Read: 8 Simple Ways to Save Your Taxes