Saving Money Strategy

[genchan]

Have you formed a specific saving money strategy or do you simply save money when you have extra? Would you consider a budget a saving money strategy or simply a guide to keep you from spending more than you make? If you have a strategy, can you share it and what you find is the most effective part of the strategy. Thanks in advance for your help.

[meaghanchan]

I guess I don't really have much of a strategy beyond 'track your spending, look back at it at the end of every month, see where you can cut without feeling deprived'.

For example, at the end of August, I saw I'd spent $280 on groceries- for one person! I examined why that happened (internet grocery service that let me buy stuff without having to actually carry it home let me buy a lot more) and devised a strategy to cut that one expense (go to grocery store myself- weight of groceries keeps me from buying too much). In September I spent closer to $100-$120 on groceries.

I do that in every category that I feel I'm spending too much money on.

[CRFSaver]

My biggest money saving strategy has always been direct withdrawals into my ING/Emigrant accounts. Every month 355 bucks is taken out for ING and 250 for Emigrant on certain dates. Then when I have extra I do a one time transfer. I set up the automatics to conicide with my pay dates so I never miss the money. I got my sister to do this (who never saved a dime in her 35 years) and she has already accumulated a good couple grand. I dont think she has had that much in the bank since highschool. I also have maxed out my 401K.

I don't do a budget. The one thing I never budget is food. It is the one thing I refuse to budget on. It is my one vice. LOL THe other thing I used to do is not do a big purchase till I had X dollars in my account.

[jmjj215]

I believe the budget is the #1 tool for saving. CRF uses a budget - just doesn't admit it - knows exactly how much to sock away automatically each month, and if there's extra too!

[DivaJen]

We do both - we have a strategy and we sock away extra when we can.

DH's employer takes money out of his paycheck to fund the 401K. I have money taken out each month for my ING account and DD's 529.

[robex]

We use the automatic withdrawal system. We don't see the money, so we don't spend it. Anytime DH receives a raise, I use that money to up our RRSP contributions (also automatic withdrawal) or to increase out mortgage payments (also automatically withdrawn). We have plenty of money for all our needs, and the peace of mind of having money for retirement and no house payment is great. We've been doing this method for 12 years, and believe it's what allowed DH to quit his job, take four months off, and be able to choose to now only work part time.

[Snoopy2645]

I try to buy series EE bonds when I get extra money. I know some people think thats a bad way to save but for me right at this point in my life thats the only place I can put my money where I know I wont be able to touch it.

[marglo]

I definitely agree that the budget is the #1 saving strategy. I look for leaks...things I can cut out or cut back on. Other than that, our main savings strategy right now is to pay down on debt.

[PRICEPLUS]

Pay off bills as soon as possible and sock away everything I can!

[dolfinrose]

We have $600 auto transfer to ING, divided between 5 paydays each month, then if I have extra transfer that into ING also. I also, save my tips and all my change into a jar. Also when I pay off a bill I take 1/2 and put into savings and 1/2 to pay off another bill.

[jmjj215]

our main savings strategy right now is to pay down on debt.

Margo, I'm glad you mentioned that. Debt paydown is a very effective saving-money strategy.

[Tree0164]

Automatically deposits into hubby's 401k, my Roth IRA, children's 529 plans.

Ocassional depoists into our savings. I need to get better on this.

[sweeps]

One of my favorite strategies is moving money out of checking and into savings as soon as possible. Once it's in savings, it makes it very hard for me to pull it back out. Same goes for cash in the wallet -- it's way to easy to spend those 1's, 5's and 10's...

[byusteeler]

I have $200 of every check go to savings at my employee credit union( currently pays 3.5% interest ). Limited branches and the fact that there is not one where I live or conveniently located to my work makes it more difficult to get money out. I also put $25 a month in my ING account automatically and then I put what I can in my local credit union savings account (usually extra money that comes along for some unforseen reason) I also have a 401K that is auto deposit from my paycheck. Any extra money after paying bills I use to reduce debt because I feel once you have a comfotable emergency fund it is better to get out of debt that is at 7.9% interest than to save at 3.5% interest.

[BAGAGT1]

I know it sounds cliche but.......PAY YOURSELF FIRST!!!!