how to save money?
Im only 19 years old but i waste money and cant save what is a simple plan to save money and create some type of way that i can have money when i need it....i really dont have many expenses if any i just waste money.
Public Comments
- you can have an automatic amount deducted from your paycheck every week with thru your employer or bank, in the meantime get hold of your finances otherwise you will continue to have nothing
- Go to your bank and have them transfer money into your savings account once a month. If you don't have it to spend, you won't miss it.
- when you get paid, divide your money like this, pay bills first, then take 25% of whats left and thats your fun money, the rest goes in a savings account. Do this immediately when you get paid. Did you know that if you put 1000.00 in a bank account getting 3% interest and let it sit there until your are 65, it would be worth over 1.5 million? Save now, have fun later and the sooner you start saving the more you money you can have fun with when your older!
- The best advice for you is "out of sight, out of mind". If you don't see it, you won't miss it, won't spend it. The best and fastest way to save money at your age is to have a job where you can invest automatically out of your paycheck in either a 401k or have savings deducted from your paycheck and put into a seperate "savings account" If you have a 401k or IRA, that you can get regular deductions, then save at the MAXIMUM allowed rate... you wont miss it.. After a while you will be amazed at how much is there. The best part about these programs is you can take loans from them and pay yourself back. So let's say we fast forward and you are now 25 and you are sitting there with 50,000 in your 401k.... hmmm now you want to buy a new car. Well you can take 1/2 of that out, so you take a loan from yourself for 25,000.... not bad.. now all the interest you pay on the 25,000 actually goes back to yoursefl.. you become your own bank. best of luck
- Most people your age have problems not spending everything, and it's hard, but, as the saying goes, "if you don't pay yourself first, you'll have nothing left." One way would be to increase the amount of money taken out of your paycheck, either by joining a credit union (if one is available) and having automatic deductions; another is to join your company's pension plan if you can, usually a 401K. Another last resort is to ask them to increase the amount withheld for federal or state income tax, then when you file a return, you'd get the money back. (Try if at all possible to put the refund into a savings plan rather than spending it.) For some people, having money withheld, either as savings or as extra pre-paid taxes is the only way they can save money. Even if all you set aside (either in a credit union or by extra taxes) is an extra $20 a week, in a year that's $1,000. I put my brother into a 401K at his job, and the company matches 100%. I started him on $8 a week, now over 5 years later (with some increases in his contribution so it's 15%) he now has more than $20,000 in his plan. Personally, if you can afford it, you need to try to save 20% of what you make, 10% as short term money, 10% as long term. If you can discipline yourself to do this you'll have a lot fewer disasters when you have money to cover emergencies.
- -Costco membership to buy eye glasses, gas and tires; make sure everything else you buy really is a good deal before you get it -Read The Tightwad Gazette by Amy Dichzyn. Get it from the library - Carport sales are a great place to look for stuff. You’d be amazed at the bargains you can find on high quality stuff that other people get tired of. -Buy purchases with cash and negotiate the price -Convenience food costs more, cook from scratch -Check out this e-book about grocery shopping: http://www.grocerybook.com/ -Plant a garden. -Live a simple life (and hang around others who do too so they don't tempt you to overspend) -Look for cheap entertainment: walk in the park, library, rent a movie, camping, $1 movie theater -It's amazing how easily additional services creep up on you. You sign up for one, and then another, and eventually you've got many. Here's just a partial list of stuff that adds up- Cable TV, DSL Internet, Netflix, Yahoo Music Subscription, cell phone, magazine subscriptions -Ditch your cell phone in favor of Prepaid. You’ll save $20-$30 per month depending on how many minutes you use. - Every year you should review your auto insurance coverage, and then shop around to a few different companies or sites to see if they can give you something better. One time, I reduced my rate by $500 per year this way. Make sure you check the rates your warehouse club offers if you are a member. Or if you aren't a member, check anyway. A $500 annual savings is worth a $35 annual membership. -Save a little by using credit cards with a 1% payback, and use your card for everything. The catch is to MAKE SURE the balance is paid in full every cycle, or the plan is defeated. -Don’t buy expensive cleaners, see http://www.practicalkitchen.com/hint_and_tips/homemade_cleaners.shtml for some good ideas
