is my best bet for saving money a CD with a 4 percent yield?

In this kind of market, any little thing you can do to save a bit more, at a slightly higher rate, should not be overlooked. Here are four things to consider: It’s harder to spend money that you never touch. We have long argued to "pay yourself first" as a technique for guaranteeing that you regularly invest. What we mean is that when you sit down to pay bills each month, the first check you write should be to yourself, for your investments or cash reserve. Now, that takes discipline, to be sure.

So here's a painless way to save. Sign up with your bank for an automatic monthly (or weekly) savings plan. If you get direct deposit through your employer, arrange for your bank to automatically withdraw a set amount from your account to a separate savings account, money market account or mutual fund of your choice. This way, your investments are already made before you even see your paycheck.

Talk to your banker. You have some money in your checking account. And you have your emergency fund—some three to six months of pre-tax income—stashed somewhere liquid and safe. Do a little bit of competitive shopping, find out who is paying the best rates—then ask your current bank to boost the interest you are being paid. Odds are they will. If not, you have nothing to lose by moving accounts to a bank with better rates.

Cut investment fees. Sure, we prefer no-load index funds to just about every form of investment, but don’t stop there. All else being equal, go with the fund that charges the least. For example, if you are going to go with a S&P 500 index fund, go with the company that charges the least. Don’t leave any money on the table. Make sure you are contributing to your company’s 401(k) plan, and check to see that you are getting the full 401(k) match from your employer if one is offered. The benefits from contributing to an employer-sponsored 401(k) are threefold. First, any money that you contribute is pre-tax. For example, if you earn $50,000 a year and put $3,000 into a company 401(k), you only pay taxes on $47,000 of income.