12 answers
12 answers
Updated
Simona’s Answer
Hi Alexa,
Savings can be hard to do unless there is a focus. You did not state if your goal was to save for investing, create an emergency account, etc. So, I'm working under the assumption that you want to create emergency savings. The easiest way to start saving is to automate a certain amount of money (example: $25 per week to go to an automatic savings account that you don't touch). Before doing that, I recommend other steps first:
1. Know what money you have coming in (income: pay from work and other income)
2. Know what money you have going out (expenses: rent, utilities, student loans, credit cards, car, etc.)
3. Minus income from expenses--this will give you an idea of the amount you can work with to invest(net)
4. If you have a savings account then set up another account with same bank (example: called emergency savings or investing account)
5. Set up the account so that the amount you want to save is automatically deducted every month
6. Start with a small amount that you won't miss
7. Every 6 - 12 months, evaluate to see if you can invest more and increase the amount to be transferred to this account
Note: You can always change the amount (increase or decrease) or even stop transfers altogether. This is the easiest way to start saving.
Here are some links to articles that can get you started:
https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money
https://www.moneycrashers.com/how-to-start-saving-money/
https://www.microsoft.com/en-us/microsoft-365-life-hacks/budgeting/7-simple-ways-to-start-saving-money
Read articles and see what is best fit for you
Determine how much you can save per week, month, paycheck
Open a savings account (if you have one already, create a new one at the same bank) for emergencies only
Transfer some of this amount to the new account monthly (start small)
Increase amount that goes into this new account over time (in small increments)
Savings can be hard to do unless there is a focus. You did not state if your goal was to save for investing, create an emergency account, etc. So, I'm working under the assumption that you want to create emergency savings. The easiest way to start saving is to automate a certain amount of money (example: $25 per week to go to an automatic savings account that you don't touch). Before doing that, I recommend other steps first:
1. Know what money you have coming in (income: pay from work and other income)
2. Know what money you have going out (expenses: rent, utilities, student loans, credit cards, car, etc.)
3. Minus income from expenses--this will give you an idea of the amount you can work with to invest(net)
4. If you have a savings account then set up another account with same bank (example: called emergency savings or investing account)
5. Set up the account so that the amount you want to save is automatically deducted every month
6. Start with a small amount that you won't miss
7. Every 6 - 12 months, evaluate to see if you can invest more and increase the amount to be transferred to this account
Note: You can always change the amount (increase or decrease) or even stop transfers altogether. This is the easiest way to start saving.
Here are some links to articles that can get you started:
https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money
https://www.moneycrashers.com/how-to-start-saving-money/
https://www.microsoft.com/en-us/microsoft-365-life-hacks/budgeting/7-simple-ways-to-start-saving-money
Simona recommends the following next steps:
Updated
Doc’s Answer
Kayla you’ve probably heard it before. Creating and sticking to a budget is one of the best ways you can start saving money. Making a budget doesn’t mean you have to give up fun for the rest of your life. Many people don't know exactly how much they're spending each month, like: food; entertainment; clothing etc, but being aware of how much your spending is the first step to being in control of where your money goes. By tracking each expense, you'll get a better feel for where your money is going and make sure it's in line with your priorities and goals. It can also help you to identify places you could save money.
Kayla if you don't have a bank account yet, your parents' bank may offer student and teen savings accounts to get you started. A savings account where you can set aside your birthday or graduation money or future paychecks is a great way to start saving up. It's a safer way to stash your money than tucking your cash or checks away in a drawer. Plus, some savings accounts will allow you to accrue interest on your deposits, which can help you build up you savings over time.
Good spending and saving habits come with practice, so remember your goals Kayla and if you don't meet your goals, you can learn from your mistakes and do better next time.
Hope this is helpful
Kayla if you don't have a bank account yet, your parents' bank may offer student and teen savings accounts to get you started. A savings account where you can set aside your birthday or graduation money or future paychecks is a great way to start saving up. It's a safer way to stash your money than tucking your cash or checks away in a drawer. Plus, some savings accounts will allow you to accrue interest on your deposits, which can help you build up you savings over time.
Good spending and saving habits come with practice, so remember your goals Kayla and if you don't meet your goals, you can learn from your mistakes and do better next time.
Hope this is helpful
Tracking expenses is important! I again started doing this when I retired. It's good to see where your money is going, at a glance. I'm surprised how much goes to the dog. Pets are not cheap!
Kim Igleheart
Thank You Kim. Every person can make a difference, and every person should try.
Doc Frick
Thank You Simona. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” –
Doc Frick
Updated
Kim’s Answer
It sort of depends on if you have a regular income stream. If you have a job and a paycheck, some employers will set up direct deposit so the money comes off your paycheck before you see it. Or, you could buy US Savings Bonds, either off your paycheck or a direct allotment from your checking account. You want the money sort of "out of sight, out of mind." But, only if you don't have a need for it! If you have bills and other expenses, make sure you don't save so much you can't cover your living expenses. You can make it a certain amount, or, a percentage of your check. The percentage is nice so if you have a smaller check your savings amount is also smaller.
It helps to sort of have financial goals. I remember saving up to buy a guitar, for example. It's nice to see the rewards of saving, so, if you've never saved before, don't make the goal something 5 years down the road, make it something smaller that you can afford after a few months of savings.
Hope this helps!
It helps to sort of have financial goals. I remember saving up to buy a guitar, for example. It's nice to see the rewards of saving, so, if you've never saved before, don't make the goal something 5 years down the road, make it something smaller that you can afford after a few months of savings.
Hope this helps!
Updated
Paul’s Answer
I might consider the 90 to 10 formula.
Basically, taking 10 percent of each take home paycheck or earnings and placing it into a bank savings account or money market and not touching it.
So, saving 10 percent of earnings and living on the other 90 percent.
You can also have this done through a direct deposit method through employers.
Basically, taking 10 percent of each take home paycheck or earnings and placing it into a bank savings account or money market and not touching it.
So, saving 10 percent of earnings and living on the other 90 percent.
You can also have this done through a direct deposit method through employers.
Updated
Sophie’s Answer
One of the easiest ways to save the money you receive is to have some of it set aside automatically into an account that is "out of sight, out of mind." If you receive a paycheck, there is often an option in your payroll system to have part of each check go to a separate savings account. If you earn money in cash, you could have a separate envelope ready on pay day that you can put the money earmarked for savings into, so that it never mingles with the cash you plan to spend. You can also set up recurring transfers from your checking account to a savings account, but avoid this if you think your spending account balance may dip low - these transfers could trigger expensive overdraft fees. Some savings apps will transfer small amounts to a savings account automatically based on your available checking balance. These apps also typically try to check before transfers to minimize the likelihood that they will generate an overdraft, but be aware the risk still exists.
Tammy Laframboise
Present pension and financial planning information to members of a pension
43
Answers
Updated
Tammy’s Answer
Any activity that you choose to do needs a reason to do it. This is the motivation that will propel you to both start and to continue. Choose one thing that you want to save for. Then you can get down to the nitty gritty of figuring out how much you need to save in total. Decide your end date. When do you want to have the money available. For example, you want to buy a car in 3 years. The cost you have determined will be $30,000. That means that you must save $10,000 per year. Break this goal down to weekly amounts and then evaluate if this is a doable savings goal. As you tweak the goal and the timeline you will be able to give yourself the motivation to go for it. Another handy reminder is to put a picture of your goal in your wallet so that every time you go to spend money you can decide if you really want to make the immediate purchase or would you prefer to save that money to reach your future goal. Saving can become a habit. A very good habit!
Visualizing how you are progressing to you goal can help. Draw a thermometer and keep track of your progress to reach your savings goal.
Tammy recommends the following next steps:
Updated
Alexa’s Answer
Hi! There’s a lot of cool methods and ideas to do this. You really need to make a budget… what’s your income? And what’s left after you pay your bills? After you have the reminder… you can decide how much you want to put away. Usually they say at least 15% of your extra money should be saved. I also suggest investing into the stock market with extra money so it grows over time.
Updated
Caren’s Answer
It can be very challenging to have the discipline to save money! I would recommend determining your starting goal (make sure it's reasonable) and setting something up to automatically contribute to your savings account on a recurring schedule that works for you. Once you get used to that amount going to savings, see if you can continue to increase the rate by 1% and adjust your goal as necessary. I think the key is to start small, keep doing it automatically, and you will see that patience and persistence will pay off sooner than you think. Good luck!
Updated
Michael’s Answer
Hi Kayla,
A few things to consider when dealing with money:
1. Pay yourself first and invest and save for the future
2. Live within your means and don't keep up with family, friends or coworkers
3. Create a budget, stick to it and pay off credit cards when the bill comes in
Pay yourself first and invest and save for the future - If one is employed full-time and is paid regularly, then the paycheck should be direct deposited into one's checking and/or savings accounts. Also, one should invest at least 15% of income to the company's 401K plan. Money that is not seen is money not spent. Most companies will match an employee's 401K contribution between 3%-6% or more. Thus, double savings are being contributed to an investment medium for future retirement. Along with 401K plans, there are other investment vehicles to make the money grow through IRAs or Roth IRAs.
Live within your means and don't keep up with family, friends or coworkers - It is often easy to fall within the trap of purchasing a new car because a family member has a new car, living in an expensive apartment complex because the location is popular and other coworkers live there, or having the latest trendy clothes because everyone else is wearing the latest fashion. Remember, the only person that you have to impress is yourself. Others will not be paying your bills, rent, credit cards, etc. By not keeping up with everyone else, one will have a more manageable lifestyle.
Create a budget, stick to it and pay off credit cards when the bill comes in - Fantastic, you got your first paycheck! But, you should not splurged. When looking at monthly expenses, it is best to write down every expense that you may incur - rent, utilities, groceries, clothing, gas, etc. Expenses should be written in one column. In the next column, total monthly income should be written down. Total Monthly Income - Total Monthly Expenses = Total Profit (Getting Ahead) or Total Loss (Falling Behind).
If one is getting Starbucks coffee daily, the costs can add up quickly, especially if the daily trip to Starbucks is $6.00 per day. One way to keep track of expenses is to save all of your receipts and record the expenses per day. At the end of the week or month, expenses should be added up to see where the money outflow is going.
Credit cards should be paid in full each month. Otherwise, credit cards can be never ending traps. If a balance carries over, then the balance will have a high interest rate added to it. Some credit cards will have variable rates. Meaning, one will pay the variable rate plus prime like 21% plus another 5% or higher. This will lead to you paying the credit card/bank first and impacting your monthly income flow.
Discipline is needed for all the recommendations above. We work hard for our money and should work hard to keep our money. Once our immediate financial goals are being met and we are on track for saving for our future, it is okay to treat and reward oneself now and then to a nice vacation, clothes, going to the movies or whatever one has interests in. Moderation is also a key to financial freedom.
Hope this information helps and good luck in saving for yourself and your future!
Pay yourself first and invest and save for the future
Live within your means and don't keep up with family, friends or coworkers
Create a budget, stick to it and pay off credit cards when the bill comes in
A few things to consider when dealing with money:
1. Pay yourself first and invest and save for the future
2. Live within your means and don't keep up with family, friends or coworkers
3. Create a budget, stick to it and pay off credit cards when the bill comes in
Pay yourself first and invest and save for the future - If one is employed full-time and is paid regularly, then the paycheck should be direct deposited into one's checking and/or savings accounts. Also, one should invest at least 15% of income to the company's 401K plan. Money that is not seen is money not spent. Most companies will match an employee's 401K contribution between 3%-6% or more. Thus, double savings are being contributed to an investment medium for future retirement. Along with 401K plans, there are other investment vehicles to make the money grow through IRAs or Roth IRAs.
Live within your means and don't keep up with family, friends or coworkers - It is often easy to fall within the trap of purchasing a new car because a family member has a new car, living in an expensive apartment complex because the location is popular and other coworkers live there, or having the latest trendy clothes because everyone else is wearing the latest fashion. Remember, the only person that you have to impress is yourself. Others will not be paying your bills, rent, credit cards, etc. By not keeping up with everyone else, one will have a more manageable lifestyle.
Create a budget, stick to it and pay off credit cards when the bill comes in - Fantastic, you got your first paycheck! But, you should not splurged. When looking at monthly expenses, it is best to write down every expense that you may incur - rent, utilities, groceries, clothing, gas, etc. Expenses should be written in one column. In the next column, total monthly income should be written down. Total Monthly Income - Total Monthly Expenses = Total Profit (Getting Ahead) or Total Loss (Falling Behind).
If one is getting Starbucks coffee daily, the costs can add up quickly, especially if the daily trip to Starbucks is $6.00 per day. One way to keep track of expenses is to save all of your receipts and record the expenses per day. At the end of the week or month, expenses should be added up to see where the money outflow is going.
Credit cards should be paid in full each month. Otherwise, credit cards can be never ending traps. If a balance carries over, then the balance will have a high interest rate added to it. Some credit cards will have variable rates. Meaning, one will pay the variable rate plus prime like 21% plus another 5% or higher. This will lead to you paying the credit card/bank first and impacting your monthly income flow.
Discipline is needed for all the recommendations above. We work hard for our money and should work hard to keep our money. Once our immediate financial goals are being met and we are on track for saving for our future, it is okay to treat and reward oneself now and then to a nice vacation, clothes, going to the movies or whatever one has interests in. Moderation is also a key to financial freedom.
Hope this information helps and good luck in saving for yourself and your future!
Michael recommends the following next steps:
Updated
Rebecca’s Answer
Thank you for your question. I am glad to hear that you have plan to save money.
I think these question has 2 sides: how to save money, how to save money,
To save money, you put down how much money you have every month, eg the pocket money from your parents, etc. Then, you have to put down how much you really need to spend every month eg meals, transport, etc. Then, you can find out how much remains. You can then consider whether you save some of the money and consider to use some on items you want.
On the other hand, you can consider ways to earn more monies, eg do a part time job, etc. However, please consider the job is suitable and safe first.
Hope this helps! Good Luck!
I think these question has 2 sides: how to save money, how to save money,
To save money, you put down how much money you have every month, eg the pocket money from your parents, etc. Then, you have to put down how much you really need to spend every month eg meals, transport, etc. Then, you can find out how much remains. You can then consider whether you save some of the money and consider to use some on items you want.
On the other hand, you can consider ways to earn more monies, eg do a part time job, etc. However, please consider the job is suitable and safe first.
Hope this helps! Good Luck!
Updated
Stephanie’s Answer
What helped me was to take my paycheck and put half in a Bill Pay Account and half in a Personal Account. I then try to ensure that my bills are no more than half of my paycheck. Then when I would have extra money in either account, I would move it to my savings account. This helped me implement a budget, but have it be flexible enough to fit my lifestyle and personality.
Dan Wolf
Retired Electrical/Software Engineer and part-time College Professor (BSEET and MS Engineering Management)
129
Answers
Updated
Dan’s Answer
Kayla,
Your question asks about saving money rather than earning money and there is a difference. For a specific answer to your question, I will say "Spend less than you earn and save the rest". Pretty simple advice but frequently not adhered to. Some ideas: don't buy an expensive car, don't buy a new car every couple years, don't buy lunch every day (pack your own), avoid monthly paying credit card and bank loan interest (pay cash), don't buy an expensive house, learn to repair things yourself, shop for bargains, avoid Starbucks coffee, etc. Assuming that you make enough money for your basic (simple) necessities, anything beyond that is potential savings. Many high earners are also high spenders so they never have enough money and many low earners still manage to save enough to lead very comfortable lives without financial emergencies. You may want to Google the term "Fire" as in "Financial Independence, Retire Early" for additional ideas. You may still be young but financial planning is best learned sooner than later. As an example, a 25 year-old person earning $60,000/year who saves 10% with an employer who contributes 3% to your retirement plan (13% total) will achieve slightly more than $1,000,000 by the age of 55 (or almost $2.5M by age 65).
One of my favorite ideas on how to save is the following: When you get your first job, say earning $20/hour, have it deposited into a checking account and ask the bank to automatically move 5-10% (or more) into a separate savings account. Then every time you get a raise (annual?), increase the savings amount by 1%. If you do this at the start, you will never notice the money being moved to the savings.
How to "earn" a lot of money? My best generic suggestion is to "have a good work ethic" although a good second priority would be to earn a college degree.
Your question asks about saving money rather than earning money and there is a difference. For a specific answer to your question, I will say "Spend less than you earn and save the rest". Pretty simple advice but frequently not adhered to. Some ideas: don't buy an expensive car, don't buy a new car every couple years, don't buy lunch every day (pack your own), avoid monthly paying credit card and bank loan interest (pay cash), don't buy an expensive house, learn to repair things yourself, shop for bargains, avoid Starbucks coffee, etc. Assuming that you make enough money for your basic (simple) necessities, anything beyond that is potential savings. Many high earners are also high spenders so they never have enough money and many low earners still manage to save enough to lead very comfortable lives without financial emergencies. You may want to Google the term "Fire" as in "Financial Independence, Retire Early" for additional ideas. You may still be young but financial planning is best learned sooner than later. As an example, a 25 year-old person earning $60,000/year who saves 10% with an employer who contributes 3% to your retirement plan (13% total) will achieve slightly more than $1,000,000 by the age of 55 (or almost $2.5M by age 65).
One of my favorite ideas on how to save is the following: When you get your first job, say earning $20/hour, have it deposited into a checking account and ask the bank to automatically move 5-10% (or more) into a separate savings account. Then every time you get a raise (annual?), increase the savings amount by 1%. If you do this at the start, you will never notice the money being moved to the savings.
How to "earn" a lot of money? My best generic suggestion is to "have a good work ethic" although a good second priority would be to earn a college degree.