Can you teach me how to save enough money??
I'm 20 and want to start saving my money. I have 2 more years left of college and I want to have a new car and be able to move out of my home and get an apartment upon graduation. I plan on teaching right out of school. (35K/yr) During college I make about $100 dollars a week, and I work full time on vacations. ($400/wk) Currently I only have about 1000 saved up and I just got my first credit card to gain good credit. I pay the full amount every month. What can I do to invest my money so that I can afford to make payments on a $20,000 car next year while still saving for my apartment in 2 years. How much would I have to save... and where is a good place to save it? Savings account? Invest? I'm just looking for a little advice! Thanks!
Public Comments
- www.ingdirect.com is a great online savings bank. its a regular savings account that holds interest rates above prime. you will never be punished for withdrawels. check it out!!!
- This may only answer part of you entire question, but: 1) To save money - Start by saving a portion of EVERY piece of income you receive (your goal should be at least 10%). Then, plan now how you will allocate every raise, bonus, windfall, or any other unexpected amount of money you receive. You should make allocations for giving, savings, emergency fund, elimitating debt, and spending. 2) As your savings grows, start investing with CDs at your bank. You will get a decent rate of return with no risk and you can still withdraw your money if absolutely necessary. Worry about other types of investments later. 3) Don't plan on making car payments. Plan on making "car payments" to your savings account until you have enough to buy the car for cash. This will have interest working FOR you instead of AGAINST you. Hope this helps. Good luck in all your endeavors.
