How to save money

[Liviathan]

I am 26, make over 65k and have a hard time saving money.

How do you guys do it? What do you recommend?
I want to cut my monthly expenses and I am doing good there....is just everytime I walk by Banana Republic or The Gap there is something I just want!!!

Any advice would be great.

Thanks

 

[Viper GTS]

Spend less than you make.

Viper GTS

 

[Migroo]

If you make over 65k arent you smart enough to figure out that you just have to spend less and put what you dont spend into a safe place where you cant get at it?

 

[deftron]

Any advice on how to make 65K by the time you're 26 ?

 

[Migroo]

LOL deftron

 

[WhiteWonder]

don't ask me, i can't save, becasue i don't even make enuff to pay the bills

 

[PsychoAndy]

easy.

chop up all credit cards.
goin to the mall? forget it.
this should be your new daily routine for saving money

sleep work ATOT.

repeat.

any questions?

 

[meaty]

<< Any advice on how to make 65K by the time you're 26 ? >>



I ask the same question?

 

[NogginBoink]

I'm actually in the same boat.

What I do is have money taken out of my pay before it gets to my wallet. I have 15% go to my 401(K), $3000 a year go to my Roth IRA, so much go to my employee stock ownership program, so much to my brokerage accout, etc.

Whatever's left goes to my bank account and I spend that.

 

[Barnaby W. Füi]

maybe losing your job would teach you how. seriously. i was unemployed, but just got hired (at mcdonalds w00t ), not -having- money teaches you how to not spend it

every time you go grocery shopping, think "do i need this? could i buy something similar for cheaper?" , get the 50 cent bread, not the 2 dollar bread, get the generic 99 cent chicken nuggets, not the 3 dollar ones, etc etc.

if you have enough clothes, (i.e. you dont -need- more clothes), dont buy any. dont buy new cars, they are a rip off. at the very least buy a 3 year old car or something.

just some ideas.

 

[Barnaby W. Füi]

<< don't ask me, i can't save, becasue i don't even make enuff to pay the bills >>


ditto

 

[JohnCU]

I started saving money by making a list of all them money I get and spend. Just create one for yourself in Excel. It helps me out. You can really see where your money is going and what you can do to cut down.

 

[John]

<< I am 26, make over 65k and have a hard time saving money. >>



What do you do for a living?

 

[Viper GTS]

<< I'm actually in the same boat.

What I do is have money taken out of my pay before it gets to my wallet. I have 15% go to my 401(K), $3000 a year go to my Roth IRA, so much go to my employee stock ownership program, so much to my brokerage accout, etc.

Whatever's left goes to my bank account and I spend that. >>



He actually has a very, very good suggestion. I'm 19, last year I made $32,000. I saved nothing.

Starting in December of last year, though, I started putting 10% of my pre-tax income into a 401k. My company tosses in another 1.5%, for a total of 11.5% of my income saved before I ever see it. Took me about two paychecks to be used to the smaller takehome, now I don't even miss it. I'll probably increase it to 20% before too long, I'm taking home much more money than I need.

Out of sight, out of mind. Make it so you don't have to think about it. You'll quickly get used to not having the money, & it will pile up silently.

Viper GTS

 

[gar598]

listen to clark howard hehe

 

[Tominator]

NogginBoink

Good job! :Q

 

[StageLeft]

You need to grow up and get some willpower for starters

If you're not contributing into a 401K or IRA shame on your ass. Have a stiff amount of your yearly income pulled out of paychecks before you even get to see any of the money, and you'll hardly miss it.

STOP carrying balances on your credit card. Just say no. Stop this now.

 

[toant103]

don't go into the Hot Deals forum. Don't eat at home. Go to your parents, friends........................................


Don't eat out. heheheh

Free loader.

 

[zsouthboy]

<< easy.

chop up all credit cards.
goin to the mall? forget it.
this should be your new daily routine for saving money

sleep work ATOT.

repeat.

any questions? >>




exactly

zs<----unemployed w00t!

 

401K, Roth IRA's.

Directly pulled from your check, pre-tax.

 

[amdskip]

401k, even I get that working at Wal-mart after a 1 year period and 1000 hours. I can cash this out in three years which I will probably do as Walmart is just a part time job for me.

 

[NogginBoink]

Well gee folks, thanks for the kudos.

Here's some more things I do:

I only have 1 credit card and it has a $1K limit. One of the smartest things I ever did was call my credit card company years ago and told 'em, "stop raising my limit!" When my credit card is maxed out (always), I stop charging stuff.

I have a separate bank account for my mortgage payment. That money is also off limits for spending. I have my employer direct deposit just enough for the mortgage payment into that account.

Despite the abomination of a user interface, I do use MS Money to track my spending. It takes some effort to get that discipline going, but it's worth it.

Spend time at www.fool.com.

I'm always broke, but my bills are paid and my savings are constantly growing. I'm poor now, but I'll be rich later.

And Viper's gonna be rich much earlier in life than I will.

 

[Ausm]

Goto an online bank like www.ingdirect.com that pays good interest and with the cash you make you could afford to pull out 100/week ...I do 50/week and I don't make asmuch as you do

Ausm

 

[kranky]

Saving money is easier than you think. All you have to do is, like others have said, have it withdrawn directly from your paycheck. But you need to be disciplined enough to let it alone. Check this out - if you save $1250/month in a 401k or other tax-deferred account, if your savings earns only 8% you will be a millionaire in 30 years. If you can leave it alone for 40 years, you'll have OVER $1.8 MILLION dollars. That doesn't even include that you could save even more by getting pay raises during your career. This is very doable at your income level and you have a great opportunity to set yourself up for life by saving early.

Remember that your 401k contributions are pre-tax so your take-home pay won't go down as much as you are saving which makes it even easier.

You might think that's a lot of money to save. It isn't that much for your situation. To make it easier, watch your spending also. If you can't stay out of the stores, don't make a habit of going to the mall. I'm assuming you have no credit card debt.

Because you're young, the extra years that your investments will be growing will make a huge difference down the road.

[edited to fix typo about 401k deductions being pre-tax, thanks for the catch NogginBoink]

 

[b0mbrman]

Heh .

Yeah, have it taken automatically from your paycheck...your expenses will adjust accordingly