We can’t control bond yields, stock prices or inflation. But there’s much we can control, including how much investment risk we take, how much we pay in investment costs, how we react to the market’s ups and downs and how much we spend and save.

Jonathan Clements, who spent 18 years writing for the Wall Street Journal, has written a new book, “The Little Book of Main Street Money,” and he believes we should stop worrying about the things we can’t control and focus on the things we can.

Clements said, “We can live beyond our means in the short term, by tapping our home’s equity, racking up the credit cards, or borrowing in other ways. But that isn’t sustainable over the long haul; we are constrained by our income.”

Clements offers seven compelling reasons to spend less and save more.

• The earlier we start saving, the easier it will be. The required monthly savings will be smaller simply because we can spread the effort over more months.

• Spending today doesn’t seem to buy lasting happiness. Studies show the thrill we get from our purchases often fades quickly. Impulse buying is often a bad decision.

• Saving regularly can give us peace of mind. If we know we’re living within our means, we are more likely to feel financially content.

• Saving is a bargain compared with spending. Every dollar we earn and spend will be taxed, so we may end up with 60 or 70 cents worth of merchandise. If you stash that dollar in your 401(k) plan, you get to keep the money and leave it to grow, tax-deferred. Any matching contribution from your employer will increase the return.

• The tax code is stacked in favor of savers. A slew of tax-favored accounts exist — 401(k) plans, Roth IRAs, 529 college savings plans and more.

• Becoming a top-notch saver doesn’t take huge sacrifices. Suppose we step up our savings rate from 5 to 10 percent of our paycheck, thus doubling the amount we save. The difference is barely noticeable, but can yield noticeable rewards.

• Diligent savers need smaller retirement nest eggs. If we’re big-time savers, we won’t just accumulate our desired portfolios more quickly, we also will need less money to retire because we are accustomed to living less expensively.

Finally, Clements acknowledges, “Budgeting doesn’t work for most people. When we budget, the idea is to analyze our monthly expenditures, figure out ways to cut back, restrain our spending, and then save whatever remains at the end of the month. “

In 1967, one of my early mentors taught me that we should espouse the “pay-yourself-first” philosophy. Put some money away first, before other expenditures gobble up your income. Payroll deduction savings is one of the best ways to pay yourself first.

Contact Tom at 1030 Seminary St. Ste. D, Napa CA 94559, 254-0155, fax 254-0158 or e-mail suntrm@aol.com.