What is a realistic way to save money?
B asked:
After I am done paying my bills each month, I don’t have much money left over to save or spend. Do you have any suggestions on how I can go about saving money?
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After I am done paying my bills each month, I don’t have much money left over to save or spend. Do you have any suggestions on how I can go about saving money?
February 18th, 2009 at 1:59 pm
consolidate your debts (home equity, sign loan) look into lowering your standard of living slightly (cable, internet, cell phone, dining out etc.) save up some cash and give yourself a 6 month income cushion and then slowly start getting the luxaries back. this should help you feel more comfortable month to month
February 21st, 2009 at 6:06 am
Generally I follow the following ideas w/much success, they are in no order of importance:
Learn how to cook and have fun preparing meals you can take to go work, school, or anywhere else. Eating out is pretty unhealthy for most people if you learn how to cook it saves time and money.
1) Set up direct deposit, split at least into one online savings w/good int rate & one free checking acct.
2) Fully fund the Roth IRA (after tax benefits) each year and after doing so, select no-load index funds (at least one that tracks the S&P500, one w/Euro & Asia exposure, one small cap). Let compounding work for you.
3) Reduce debt to nill. How? Consolidate any credit cards into one with the lowest fixed rate, best benefits, no annual fees & has a good grace period. Once paid off in full, learn how to control emotional spending habits/impulse buys… this goes a long way especially during holidays season and feeling blue.
4) Carefully research (online & w/consumer reports) items you must have, i.e. ipods, D&G/Dior/Versace clothing, dvds, cosmetics and find bargains/buy then & try to find friends w/discounts/hook ups. Of course don’t just use them for their hook up benefits, these people will become part of your networking which may help in the future w/your career and meeting new people and do the same for them. Also try not to buy first generation tech items (same for cars) wait for at least nine months to a year for updated versions.
5) Complete a higher education at the best school that will accept you, pays dividends in the future w/networking and it is the single BEST investment you will ever make in your life for yourself.
6) Contribute the minimum needed w/employer to get the match (pre-tax benefits).
7) Carry around $20-40 cash per day and see how long you can go w/o spending it. Likewise if you have change don’t use it, save it up and deposit it once a month, you’ll be amazed how fast you save this way.
9) Stay healthy. Meaning avoid as much as possible smoking, drinking and other hazardous activities. Staying healthy now will save you tons of monies in the long run.
10) Take the time to educate yourself w/finances & how money really works. Start slow, pace yourself and learn the importance of controlling your monies, not the other way around. Have fun w/it b/c knowing how money works is really empowering!
11) If you got loose change save it and then deposit it at the bank instead of spending it immediately.
February 22nd, 2009 at 12:28 pm
you say you little money to spend or left over but you save money by putting it a CD……you can save money by taking it easy spending unnecessary things
February 22nd, 2009 at 6:57 pm
congratulation!!! you won lotto!!! You are one of very few who have managed to work on having positive cash flow.
1st consider putting some money on tax efficient way!!! You can do it buy buying house or investing in real estate, retirement, college education for kids etc.
February 25th, 2009 at 3:26 pm
Save all of your bill stubs and reciepts for one month in a plastic baggie. Do not change your spending habits. At the end of the month, review your reciepts and bill stubs. Where are your unnessasary purchases?
Do you eat out a lot? Try making your lunch at home and bringing it to work. Some people can save up to $30 a week= $90+ dollars a month by simply making their lunch and bringing it in!
How many impulse purchases do you make? Try to think about how you are living right now pretty good without it.
Put little away at a time, it will grow…try to think if you take money out of your little cash stash, you will kill your money tree. Once you have $500 free and clear, invest it into a CD at a bank. Call around the banks for the best interest rate (they will PAY you to hold your money) 6 month ones I find aren’t too committed. But the longer you committ to saving, the better your interest rate. Plus you can have the intrest rate compounded.
Sound complicated? Ask your bank’s representative to go over CD’s slowly with you. They are very willing to help you understand.
February 27th, 2009 at 1:54 pm
Do a budget and track your spending . See how much you really waste.
get a 2nd or 3rd job pay off all bills. go back to school learn to earn, you’ll do it some more before you ‘retire’.
visit daveramsey.com to learn what schools will not teach you and banks pray you never ever learn or apply.
go with knowledge.
March 1st, 2009 at 2:06 pm
get on a buget. write down everything you spend money on. EVERYTHING. and then in one month you will see what you have spend and on what. Its a real eye opener.
March 4th, 2009 at 3:55 am
Read the book The Total Money Makeover by Dave Ramsey. He talks about how to get out of debt, save money, and build wealth.
He talks about getting on a budget so you spend every dollar of your income on paper before you receive it (this includes savings and investments). Then stick to that budget.
It’s a simple step by step plan for doing it, and it does work. But it’s also a lot of hard work. It’s about sacrifice now, so that later, you can live a wonderful life.
March 6th, 2009 at 9:55 pm
ive been told the answer to this question many times..i sugest you follow scott’s answer it REALLY work’s
March 9th, 2009 at 6:39 pm
If you mean ….. “how I can go about saving (more) money?” there are basically two methods:
1. Spend less.
2. Earn more.
Research the subject at your local library to learn the fine points.
Good luck.