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This has always been our downfall. We live paycheck to paycheck and its killing us financially right now. I'd like to open up a savings account that has a nice return and is not *too* readily available to get funds from except for an emergency. Anyone have any suggestions? Any other ways to save money?
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Re: How do you save money?
I started out by having mine come out of my paycheck before I even saw it. I can have as little as $2 a paycheck come out for savings, or as little as $6 for my 401K. Every pay raise I increase my savings deductions some. Another tidbit--if you have or can get a 401K or can get a medical flex or childcare flex account, do it. Those dollars are used pretax. In fact, sometimes you can increase what you put into your 401K, without lessening your paycheck. Years ago a guy from HR came and showed us how-basically I think it put me into a lower tax bracket. Anyway, those dollars have added up for me through out the years. In an extreme emergency, you can borrow that money out--and when you pay it back, you do pay interest on it--however, the interest goes back to you, in your 401 account!
My suggestion is to auto deduct it-out of sight, out of mind. -
Re: How do you save money?
How about an ING account? It takes a couple of days to transfer the money out so that's definetely a deterrent. This has worked very well for me.
Also, do you have a budget? If you're living paycheck to paycheck, that's not much fun. If you posted an overview of your expenses and income, there are lots of people who could pry help you trim a few corners. Just a suggestion though.
Good luck.Comment
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Re: How do you save money?
Oooohhhh lowering my tax bracket would be awesome. Only 6% for my company comes out pre-tax but I can add more to my 401k post-tax. Are there any websites that tell how doing this can lower your tax bracket?Comment
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Re: How do you save money?
No we don't have a budget yet and an ING acct sounds like a good idea. We literally have no money to put in it right now though. Anyone know how to save money on a money sucking house without moving?Comment
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Re: How do you save money?
I lowered my tax bracket by taking a job at McDonald's.Comment
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Re: How do you save money?
I buy savings bonds well at least I am saving again & it seems like the interest rate is good on these & they are not too readily available considering you have to hold them for 1 year.
ITs been the best way for me & I figure if you do what works for you & you are saving something that is good. I try to buy one each time I have an extra $50-100 dollars which isnt often but they add up kwim.
I used to at one time be able to save good in a savings account but after meeting dh that all went down the hole hes a real spender!!!Comment
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Re: How do you save money?
Lowering my tax bracket by taking a job at McD's would literally KILL us financially. We barely survive on what DH and I make. I also have a 5 month old and I don't want him crying for McD's french fries....Comment
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Re: How do you save money?
I actually know a 5 month old who was given fries, not a good idea IMO!
On saving try painless ways (like the daily money saving challenge) then try focusing on one area at a time. On the house, what sucks up the money? Have you turned the heat down, air up?Comment
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Re: How do you save money?
I budget for everything. I figure out what the highest bill is, for example my electric bill. I allow $40 a week or $160 a month cause that is the highest. When it is less, I save the difference. Right now I am putting it in my challenge money. Join the $20-$5000 challenge on this forum.Comment
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Re: How do you save money?
I started a few months ago putting all my loose change/dollars into a coffee can and not thinking about it. Last count I had $68.00. I don't have an Ing account yet but thinking seriously about putting this money in there or just continuing to build this little nestegg and put it in HSBC Bank which is down the street from me or just save it for Christmas and birthday presents.Comment
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Re: How do you save money?
The real trick to saving money is to pay yourself first. You should save the first 10% of what you make, but if that is hard, start smaller. It is great if you can have it taken out of your paycheck before you see it, but it never worked for us cause my husband has always been self employed. When i cash his pay, I put the money for savings in the very first envelope (I use the envelope method)
Once I had enough in the emergency fund, I started putting money into mutual funds. It is a lot harder to redeem funds than to run to the bank, and you have to pay taxes too.
I too save all my change and put it in my emergency fund about once every two months.
Save dollar bills too, if you can.Comment
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Re: How do you save money?
Yes Ima paying yourself is so important and it really is the secret to successful saving according to all the books I have read on saving and accumulating wealth.
Ima, is it you who has a Vanguard account? If so, which one would you recommend? I know their funds used to have a $3,000.00 start up fee. Is it still $3K? I heard a lot about Vanguard Wellsley. We will be ready to save with them in a year or two. I was looking at their short term money fund as we want to preserve our capital but at the same time earn good interest. Thank you.Comment
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Re: How do you save money?
Yes, I do. It is still 3K to open a fund. I have index 500 and Vanguard Star. Wellsley has been around a long time and has a real good reputation.
The book the "wealthy Barber" said this: (page 30)wealth beyond your wildest dreams is possible if you follow the golden rule: Invest 10% of all you make for long term growth. I f you follow that one simple guideline you will be a very rich man.
My last job, I worked as a waitress in an area that had never heard of tipping. somedays I would work all day and only make $20. ( I have made as little as $8) But of that $20. I would take $2 and put it in my little savings box. When I had saved $50 in there, I sent it off to a mutual fund.Comment
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Re: How do you save money?
In regards to my money sucking house, I have turned the heat down, the AC up, replaced several of the light bulbs we use most often with the new fluorescent ones that last 5 years and take less power. I'm in the process of insulating everything and sealing gaps. Our electric bill in the winter and summer is around $350 for a 3000 sq ft house. It's waaaaaaay too much. I've also inquired about my electric company's average billing program. I would like to half my electric bill eventually.
I opened an HSBC acct last night and I will deposit $20 into it. They still have their $25 dollar deal going on. I split my husband's check last night into piles. One for his gas for two weeks, one for my gas for two weeks, one for the interest on a loan we still have outstanding, and one to be depositted into our bank acct. I took away the debit cards and the check books and put them away.
We're right now at a point where we can't even pay our credit card bills and I think the reason for that is overspending. I'm looking at taking out a hardship withdrawal from my 401k to pay off most of our credit cards so that we don't have to worry about them anymore. I already cut them up. I started saving all our change and hiding it from my husband because he'll just take it all.
I have one question....our property taxes are currently not escrowed and it's going to take all of my $5000 bonus this year to pay them for 2005. For 2006, should I open a separate savings account with another online bank that has a money gift special going on and save it that way?
I'm really trying here b/c I'm sick of all this debt. Ideally I would like to just have our mortgage, one car payment and utilities to pay each month. We have one credit card that, once we pay it off, will be designated for emergencies. That card gives us cash back every year.
Is there anything you all think I should change? I value the opinions of others.Comment
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