First Real Job...No Idea How to Save

[KennySoward]

Ultimately, and what a lot of folks are saying here, is that you have to learn to put together a budget. It is not that much fun (at first) and might even seem uncool But, let me tell you that budgeting is the key to doing all the things in life you actually want to do.

Once you have a budget and are doing some daily tracking, then you can start to formulate a plan, learn where to cut, etc. But you can't do that until you have everything in front of you and are tracking it.

It doesn't have to be hard. I just put almost 100% of everything on a debit card (some people like to use credit cards) and every transaction is kept online in the bank statements. I just run a category report and plug it into my XLS file. Beats paper any day.

Today is my big monthly sit down budget day. I love it. Takes a couple hours but I'm hoping that I made some savings in October.

[jteezie]

Fresh out of college, you should still be comfortable with a college lifestyle. My suggestion, (this is what I did and I started ay just under 40k as well) is put up to 50% into your 401k because you won't miss it if you never get used to having it. However asd you are living paycheck to paycheck already (this blows my mind), a budget may be the better route.

[Whitechapel]

Ultimately, and what a lot of folks are saying here, is that you have to learn to put together a budget. It is not that much fun (at first) and might even seem uncool But, let me tell you that budgeting is the key to doing all the things in life you actually want to do.

Once you have a budget and are doing some daily tracking, then you can start to formulate a plan, learn where to cut, etc. But you can't do that until you have everything in front of you and are tracking it.

It doesn't have to be hard. I just put almost 100% of everything on a debit card (some people like to use credit cards) and every transaction is kept online in the bank statements. I just run a category report and plug it into my XLS file. Beats paper any day.

Today is my big monthly sit down budget day. I love it. Takes a couple hours but I'm hoping that I made some savings in October.

XLS file? I'd like to try that out too. So what can I do exactly, and how do I do it?

[Whitechapel]

And that is perfectly fine. We all have different priorities. So when you list your wants and needs and need to keep your wants to 30% of income, you'll put beer high on the list and it won't be one of the things you'll cut out to get the budget in line. I have no problem with that at all. What I was concerned about was the attitude that was coming across - I can't stop buying beer. Sure you can. That's much different than - I don't want to stop buying beer and I'm willing to cut out other things in order to continue to afford the beer.

What you can't do, what none of us can do, is operate at a deficit. The outgo needs to be less than the income.

Oh it's all good man. I wasn't speaking harshly or matter-of-factly, it's just one of those things that I like to do it when I have money because when I don't, I only dream about doing it again. Plus it's how I relax and unwind from a day, like I said me and my roommate are beer snobs so we like trying different bars. It's not an every day thing, but it can get expensive. Well no harm no foul.

Fresh out of college, you should still be comfortable with a college lifestyle. My suggestion, (this is what I did and I started ay just under 40k as well) is put up to 50% into your 401k because you won't miss it if you never get used to having it. However asd you are living paycheck to paycheck already (this blows my mind), a budget may be the better route.

I lol'd. Mostly out of sadness for myself. But if you can't laugh at yourself what can ya do? I'm here to get help and shape up.

[smithzs]

Hello Whitechapel,

We have something in common, I am a Computer Engineer as well and I just graduated this past spring. As I cannot speak from experience because I am just starting out, I can share with you some of my habits.

** First thing first, you need a tool to help you organize all your transactions. I have been using Mint.com. This allows you to import all account information into one place. I know what you're thinking, that's a security risk. Not to worry, their encryption software is 128-bit SSL. This allows you to track all your transactions and put them into predefined categories (of course you can always create your own). There is also an iPhone app or Droid app that allows you to keep up even on the go.

** Next, open up a high yield checking/savings account. American Express savings at 1.00%. Use this as your emergency fund account. I wouldn't invest this money as the market is very erratic right now. I put about $200 to $300 a month for now.

** For whatever you have left after you plan your budget, pay little extra on your loans. Even the smallest amount can go along ways in saving over the next 10 years as your paying off your student loans. I have about $17,000 in student loans which over 10 years of interest is about $7,000. Be smart!

** Cut back on eating out and bars that's what killed me. Or pre-game (much much cheaper!!!)

Hope this helps.

- Zach

[smithzs]

Hi Whitechapel,

Go to Mint.com. From here you can organize all your bank information (transactions) and set up a budget. I use this tool, and it helps me track every $$ I spend.

[Whitechapel]

Hello Whitechapel,

We have something in common, I am a Computer Engineer as well and I just graduated this past spring. As I cannot speak from experience because I am just starting out, I can share with you some of my habits.

** First thing first, you need a tool to help you organize all your transactions. I have been using Mint.com. This allows you to import all account information into one place. I know what you're thinking, that's a security risk. Not to worry, their encryption software is 128-bit SSL. This allows you to track all your transactions and put them into predefined categories (of course you can always create your own). There is also an iPhone app or Droid app that allows you to keep up even on the go.

** Next, open up a high yield checking/savings account. American Express savings at 1.00%. Use this as your emergency fund account. I wouldn't invest this money as the market is very erratic right now. I put about $200 to $300 a month for now.

** For whatever you have left after you plan your budget, pay little extra on your loans. Even the smallest amount can go along ways in saving over the next 10 years as your paying off your student loans. I have about $17,000 in student loans which over 10 years of interest is about $7,000. Be smart!

** Cut back on eating out and bars that's what killed me. Or pre-game (much much cheaper!!!)

Hope this helps.

- Zach

Love this post! Can I use my EasyMoney app? I spent 10 bucks on it on a recommendation last week...I should of came here and posted first!

[smithzs]

Mint.com is FREE!

[Whitechapel]

Mint.com is FREE!

Yeah but then I'd have to maintain TWO programs! The decision! I don't know which to go with! Help?

[smithzs]

After a quick review it looks like both provide the same functionality. Although, with the EasyMoney App it's not clear if you can input your account information and have it auto sync with all your transactions. If your a lazy computer engineer (like myself) having things automated is always better. Saves time and time is money. I'm sticking with Mint. Ultimately you have to use what works best for you.

[Whitechapel]

After a quick review it looks like both provide the same functionality. Although, with the EasyMoney App it's not clear if you can input your account information and have it auto sync with all your transactions. If your a lazy computer engineer (like myself) having things automated is always better. Saves time and time is money. I'm sticking with Mint. Ultimately you have to use what works best for you.

As far as I know this app wont let me sync any account info. I'll give the Mint.com a shot and see if I like it. And if it's better than the worst of it is I wasted 10 bucks on an app. Or wait until I become a better spender and use it for more advanced things. I'll go download it right now!

[Whitechapel]

I had a question...I get paid bi-weekly. But in Mint.com I can only put monthly. Should I just add up the two paychecks? Or how should I deal with this?

[Whitechapel]

Well I have a screen shot of my mint.com overview, but I cannot post it until I reach 15 posts.

[disneysteve]

I had a question...I get paid bi-weekly. But in Mint.com I can only put monthly. Should I just add up the two paychecks? Or how should I deal with this?

I know nothing about mint.com but keep in mind that if you are paid bi-weekly, your monthly income does not equal 2 checks. That would only be 4 weeks. For your monthly income, multiply your bi-weekly check times 26 then divide by 12.

So if you earn $1,000 every 2 weeks, that's $26,000/year. Divide that by 12 and you get $2,166.67/month.

[Whitechapel]

I know nothing about mint.com but keep in mind that if you are paid bi-weekly, your monthly income does not equal 2 checks. That would only be 4 weeks. For your monthly income, multiply your bi-weekly check times 26 then divide by 12.

So if you earn $1,000 every 2 weeks, that's $26,000/year. Divide that by 12 and you get $2,166.67/month.

Spot on. This paycheck will be a little more, instead of a hour lunch we're taking half hour lunches. And right now every check has been around $1,000 every two weeks, this next check will be my biggest yet though.