From an older crowd share/give advice on how to save

[Crazymix]

Thanks in advance.

[desslok]

Do an auto deposit from your paycheck straight to a different bank. You should be able to tell HR, send 10% to this account, 90% to this, for example.

[Chris_T]

Do an auto deposit from your paycheck straight to a different bank. You should be able to tell HR, send 10% to this account, 90% to this, for example.

concur. Really, the best thing is to have it taken out so that you never see it. Do you have a retirement plan through your work? They can take it out pre-tax. then you don't miss it.

Saving money is tough. Really tough. And the more you make (as you get older) the more you spend. So if you are waiting until you "get a real job" . . .don't.

[emp1acur]

Do an auto deposit from your paycheck straight to a different bank. You should be able to tell HR, send 10% to this account, 90% to this, for example.

Agree. If you were making 10% less you'd survive. Consider that 10% of your income just doesn't exist, and stash it away.

[Brackneyc]

Rule 1. ALWAYS pay yourself first. By this I mean, put money away, and do not budget for it after that. You will thank us later. I did not do it until much too late, but I do it now. I could have so easily retired at 45 had I done it.

[Wayne Evans]

Do an auto deposit from your paycheck straight to a different bank. You should be able to tell HR, send 10% to this account, 90% to this, for example.

I'll chime in..

Correct on the above......also, if you get a raise or bonus at anytime make sure to add that same net amount to the 10% you're putting in the special account.
If you don't begin these prudent habits you will merely p!ss away the extra.
I believe most of us are guilty of that at some point in our life.

Now, if you need to pay off some dumb spending habits use that bonus wisely.

Live within your means without fail.

[Crazymix]

Do an auto deposit from your paycheck straight to a different bank. You should be able to tell HR, send 10% to this account, 90% to this, for example.

WHich I do. I only put in what the company matches... When I get older I should always increas the %.. right?

concur. Really, the best thing is to have it taken out so that you never see it. Do you have a retirement plan through your work? They can take it out pre-tax. then you don't miss it.

Saving money is tough. Really tough. And the more you make (as you get older) the more you spend. So if you are waiting until you "get a real job" . . .don't.

Tell me about it.

Agree. If you were making 10% less you'd survive. Consider that 10% of your income just doesn't exist, and stash it away.

Done.

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[desslok]

WHich I do. I only put in what the company matches... When I get older I should always increas the %.. right?--------------------------------------------------------------------------------

Learn about your works programs. When HR has a training about your retirement, go! Most people blow them off, thinking "what's there to learn, I just put in x%?". But you will probably walk away learning something that is offered. For example, some places offer an automatic annual 1% increase in your contribution rate. So say you get a 3% raise at the beginning of the year, but your 401k contribution raises 1%. You are now saving more money, andd don't even notice it, and your take home check is still bigger anyways. And if its a pre tax contribution, your refund m/ay increase as well.

[Crazymix]

Learn about your works programs. When HR has a training about your retirement, go! Most people blow them off, thinking "what's there to learn, I just put in x%?". But you will probably walk away learning something that is offered. For example, some places offer an automatic annual 1% increase in your contribution rate. So say you get a 3% raise at the beginning of the year, but your 401k contribution raises 1%. You are now saving more money, andd don't even notice it, and your take home check is still bigger anyways. And if its a pre tax contribution, your refund m/ay increase as well.

Thanks for the time to write this all out. Repped. as many as I could in here.

[jnwaco]

WHich I do. I only put in what the company matches... When I get older I should always increas the %.. right?

Do as much as you can early, because it gives it more time to grow. If you put a $1 back at age 65, and retire at 66, it doesn't have as much time to grow. Put a $1 back now, and you might have $2 to $4 by the time you retire.

[tmonkey]

I am a big fan of sharebuilder for people starting out to save money.

They will take it right from your checking account on a set day and invest in shares or partial shares of stocks, etf's and funds.

it is a great way to get started and dollar cost averaging is a great way to invest.

I still use it.

[tmonkey]

Do as much as you can early, because it gives it more time to grow. If you put a $1 back at age 65, and retire at 66, it doesn't have as much time to grow. Put a $1 back now, and you might have $2 to $4 by the time you retire.

true - put as much away as you can and let your money work for you - compound interest ftmfw

[themyth2009]

Dont get married!!!!

[grounder7]

Dont get married!!!!

LOL Amen to that or marry someone who makes more.

[mixbwoy]

If you had a car payment & you finished paying it off, continue to take out the same amount & put it in a savings account. It is a good way to get ahead for the future. Just remember to leave it alone & pretend it is not there, until you really need it. Discipline is the key to saving.

[hochspeyer]

If you work for a decent (fiscally solid) company that has some sort of ESP (employee stock purchase) plan, take advantage of it. This is often a taxable plan, but often shares can be purchased and dividends reinvested without any fees- and you'll probably be able to purchase fractional shares, so you can start off small. And, since this is not retirement money, you can do whatever you please with it, whenever you want (or need) to.

[flairon]

If you have a long term loan like a car or a house, you can significantly reduce the loan's payoff date and amount by making your regular payments and then making a half payment in the middle of the month and designating it to go to the principal.

Eating out costs a hell of a lot of money compared to eating at home

Pay attention to the type of account you save your money in. Look for the highest interest bearing account you can for your money.

Credit cards will usually not be worth it. If you do decide to apply for one, pay close attention to the interest rates. The devil is in the details. That super duper low introductory rate usually changes after a year or so OR if you are on a late payment and some of those changes are ridiculous. Your best bet is to get rid of them if you have them or don't carry them around and only use them for extreme emergencies. Using them for something like gas or groceries is dumb.

If your work offers a 401k plan and they match funds, take it. It's free money.

Don't even think about borrowing short term like amscott for something you want The interest rate is about 200%

[Crazymix]

All great info. I'm really learning a lot!

[Dave76]

...dollar cost averaging is a great way to invest.

This. Dollar cost averaging is the poor man's way to decent retirement savings.

Credit cards will usually not be worth it. If you do decide to apply for one, pay close attention to the interest rates. The devil is in the details.

Credit card companies are insidious. Their only goal is to get you so deep in debt that you'll be a slave to them the rest of your life. Credit cards can be good but use them wisely. Never charge more than you can pay off at the end of the month.

[CATRACCOM]

I don't know if you would consider this 'saving' but...I use credit cards for everything and I pay them off each month so I don't accrue any interest. I have the reward cards so all my purchases...utilities, gas, food...earn points. Then at xmas time I can get all my presents without paying money for them, or even some new shoes for my kid during the year. I suppose I earn about $1500 a year that way.

[djflex]

Rule 1. ALWAYS pay yourself first. By this I mean, put money away, and do not budget for it after that. e it.

First and most important rule.

Lot of good posts. Will add it is ok to start small, but start today. Most people wait to long(myself included) and regret it.

Also, set aside a small amount of time monthly to review your budgets and investments. Make this a lifeling habit.

[philipj]

Prior to graduating from High School in 1960, a Nun talked about 15%. She said put away three accounts with 5% to each. The first 5% is to be used when you get married. The second 5% is set aside for children marriage or additional education. The last 5% is for retirement, fearing the Social Security may be taken away by the same government that gave it to us. She knew evenmore that she knew. It worked.

Presently I receive bottles of Crown Royal for Christmas. When empty they are dime banks, as only dimes fit in them. When full put on the cap, and put away in the basement of other safe place. Yep that works as fun silly hobby. And the bottles filled with dimes are really heavy. Try it, you'll see.

[Meatpants]

Protect your credit record. Its amazing how many things are influenced by your credit record. It can be the difference between paying $250 a year, and $1200 a year for something as simple as homeowners insurance. Same with car insurance. Pay your bills on time, don't over extend yourself, and don't mess with credit cards. Have one, as an emergency only back up, or traveling.

[Bushmaster]

Serious video is serious.

What you do with the money saved is your decision, but the advice on pissing money away on new cars is solid.

[flairon]

I found this book a few years ago. I honestly think this should be required reading for high school kids on this very subject. The book was actually put together by from bank info pamphlets after the market crash in the 20's on how the average individual can rebuild wealth.

http://www.ccsales.com/the_richest_man_in_babylon.pdf

[whatevergirl]

Suze Orman says...''you need to learn to enjoy saving as much as you enjoy spending.''

Seems simple enough. We're an impulsive society, I think. Instant gratification...at every turn. Saving $ requires will power, plain and simple. And living under your means. If more people lived under their means, they'd have a decent savings. I used to be a shopping addict. (very srs.) It was a bad habit...and I'm here to say...I have nothing to show for all that shopping. (well, it was fun at the time )

So be wiser than me. Don't be impsulsive...hold off on buying something for a few weeks. If you still desperately want it, it most likely won't be a wasteful purchase. Just wish I knew lil things like that 10 years ago. Live n' Learn.

[tmonkey]

i disagree with everyont that said not to use credit cards. use them for everything just make sure to pay them off every month. get points/miles/cash back and profit

[hochspeyer]

Don't be impsulsive...hold off on buying something for a few weeks. If you still desperately want it, it most likely won't be a wasteful purchase. Just wish I knew lil things like that 10 years ago. Live n' Learn.

I like that word, weggers!

My cliffs for this thread so far can prolly be summed up in one word: patience.

[GuyJin]

The only thing I'd add is never get in over your head over anything, no matter how much you think you want it or think you need it. (Outside of food and clothes, I mean, and all the other essentials).

My late father once told me: "If you have to ask how much something is, then you can't afford to buy it." That was great advice. Always save enough for yourself and when you're ready, if you truly want whatever it is you want, then pay and have done with it. Otherwise, save for yourself first, invest wisely if at all possible, and never live beyond your means.

My two yen...

[whatevergirl]

I like that word, weggers!

damn typos!