2 Answers

They cut out the unnecessary things like going out to dinner when they can cook at home. They do not go to the movies, they wait for the movies to come on TV. They do not take fancy frivolous vacations. They do not buy a car that is costly to maintain, repair and insure. They do not have more than one credit card and they only use it in emergency. If used, they pay off the balance the first month. These are just some ideas on how to save. Do not spend beyond your means. Another way to look at finances; outside of a house or car, if you can not pay cash for it, then you can not afford it. 

Do you mean how much should they set aside as savings? I would say as much as possible! However where to put it is another story! Savings accounts pay very little, in fact with inflation you may lose money in the long run.