I just did my taxes, and i made 18,000 bucks(it really was 21,000 but dam taxes), how can i save money? I know yours guyes 1st answer is gonna be no more gun buying.LOL. But seriuosly, what else can i do like activities that dont cost money lol. im single. so no women taking my money here. Money just seems to slip away from me. I dont o nothing nowere. except i just took out 5 g's from the bank backup from my own money, now i cant touch either for a year.This is one way i save up money, any more ways you guys do that work?
Need help on saving money???
- Thread starter Guero
- Start date
mricci
Member
One way i have been saving is by setting up direct deposit, and have a certain amount of money put into a different savings account. Then just dont touch that account and the money will start to build up quickly.
95strokerPSU
Member
I get 3.8% with ING. Thats really good for a savings account. Everything I put in there is going towards a down payment on a house, and doesn't get touched for any other reason.
Most important thing is just to get in the habit of putting money away. How you do that is less important. But start by picking a long term option, like a savings account or a mutual fund or whatever. Then, whenever the money comes in, make sure that one of, if not the, first things you do is to put a portion in savings.
If you can do direct deposit, that's all the better. But really the important thing is to get a system and stick to it.
Don't be too aggressive so that you need to dip back into savings for everyday stuff, because that will defeat the whole purpose. But pick a reasonable amount to start with, then maybe move it up slowly.
People tend to live up to their means (or beyond), meaning they spend whatever is readily available. So you want a system that puts the savings first and allows you to spend whatever is left.
But hey, that's just my approach.
If you can do direct deposit, that's all the better. But really the important thing is to get a system and stick to it.
Don't be too aggressive so that you need to dip back into savings for everyday stuff, because that will defeat the whole purpose. But pick a reasonable amount to start with, then maybe move it up slowly.
People tend to live up to their means (or beyond), meaning they spend whatever is readily available. So you want a system that puts the savings first and allows you to spend whatever is left.
But hey, that's just my approach.
95strokerPSU said:
ING is great. Open an account with them. Put money in it, and dont touch it. They are offering 4.75% for the next 3 months for new deposits. YOu also get 25 dollars for signing up, and a certain ammount for reffering people, i think its 50, not positive though.
web site - www.ingdirect.com
The best thing my wife and I ever did was have a set "allowence" for the month. We get X amout on the first of the month and that money has to last until the end. Before we did this our money would just disappear because we were not cautious as to how we spent it. If we spent what we had we'd just go to the ATM and get more out., that proved to be the WRONG way to do. The nice thing is that by doing it this way, any money that I save and have left over at the end of the month I can blow on whatever I want and not worry about it.
A lot of great advice given already. It really does come down to having a plan, and discipline. "Pay yourself first" is a tired old cliche that really works. My wife and I started saving the day we got married, and we didn't have a pot to p*** in. I remember how ridiculous it seemed to save $6.25 a week at first. It started a life-long habit though. We kept raising up the weekly contribution until we were putting away real money. I always found ways to make a few extra bucks. Wrenching on the neighbors cars, later on selling on eBay. I always had other little pots of savings going on for things I wanted. Maybe an envelope in the sock drawer saving up for a camshaft. I know you don't make jack right now, but force yourself to save a little. If you find yourself forced to dip into the savings, then it's time to sell a gun, or make a few extra bucks. The mutual fund is a great idea, but for 99% of the funds, you'll either need a minimum investment, or a direct deposit making automatic contribution to avoid heavy maintenance fees. You can set that as a goal for next year perhaps? Good luck. You can do it if you truly want to.
Guero said:
That would require an average annual return of about 17%. That is not a reasonable expectation. And I assure you they won't guarantee it in writing. Don't invest a dime with anyone that blows smoke up your butt. They're likely working on commission. 10% return is a far more reasonable expectation if you invest in quality stocks (mutual funds). A guaranteed return will be less than 10% return. Risk vs potential reward applies here. You can expect something more like 175K on your 10K initial investment in 30 years. Now add to your 10K every year, and we got a whole different ballgame. Reaching a million dollars is not at all unreasonable with regular investing. Do a net search for savings calculators, and you can plug in your own numbers to see how savings will compound over time.
BTW, I'm new here. Is it OK to have this conversation on this forum?
In 3o years, 1 million should buy you a can of Coke and a half a tank of gas. Remember, those wild eyed projections never figure in inflation - or volitility of returns (you win some you lose some).
Just get started and get in the habit of regular savings. Once you have a boat load of cash you can worry about where to invest it or how big it might (hypothetically) grow.
Just get started and get in the habit of regular savings. Once you have a boat load of cash you can worry about where to invest it or how big it might (hypothetically) grow.
Guero said:
He's using reasonable numbers then. Don't concern yourself with inflation too much. About all you can do about inflation is increase the amount of your investment each year. I started investing with $1000. Keep at it, and not so many years down the road your portfolio is likely worth more than your house. It didn't happen for me tomorrow, and the 10% return is certainly not linear, nor guaranteed. Only guarantee you get is if you choose to save/invest nothing. Then I can guarantee you what you'll have in 30 years. Nothing! Sadly, I know lots of people with decent jobs using that strategy. Have your friend print out a chart, and show you the VERY high cost of waiting until later to invest. Most people wake up when they are 50 years old and find out it's pretty much too late to start. I'd recommend you start with a smaller investment until you find out how you react to volatility. Put the other $8000 or so in a safe bank account while you get educated on the subject. There is a wealth of investment info on the net for the taking. PM me if you want some links.
Saving Money
Here's the skinny, make a budget, how much you earn, what your bills are for rent, food, hydro, gas, clothing etc. Also include entertainment. Add up what you need to live, and subtrack from your earnings. This gives you a basic understanding of whats left over. You may also want to try this get a receipt for every item you buy for like two weeks and keep a log of it, review it after the two weeks and you'll see a spending pattern. Once you see this pattern you can alter it. Good luck! BTW it works!
Here's the skinny, make a budget, how much you earn, what your bills are for rent, food, hydro, gas, clothing etc. Also include entertainment. Add up what you need to live, and subtrack from your earnings. This gives you a basic understanding of whats left over. You may also want to try this get a receipt for every item you buy for like two weeks and keep a log of it, review it after the two weeks and you'll see a spending pattern. Once you see this pattern you can alter it. Good luck! BTW it works!
