Best Tips On Building A Savings Nest...?

Question

Hi,

Would really appreciate if you could help...

I want to be able to save money for my future.

Here are some of the details of my personal income...

Salary - Around $40,000 a year

I make extra money from my band and songwriting...

Cheers!!
Hope you can help...

Answer 1

bay area native? get hyphy!

40k is a nice little salary to start off with..

my advice? first make a montly budget.. make a list of your expenses.. then cut out whatever misc. expenses you have that might be keeping you from saving more money

2nd? let's start w/ the basics.. try to save 3 to 6 months worth of emergency savings.. open up a savings acct. with a high yield (such as ing direct 4.25%).. start off saving 100-200 bucks a month, or even more if you can.. before you know it.. you'll have a nice little stash!

3rd? open a ROTH ira (retirement acct).. the earlier the better (i wish i did this years ago).. fidelity is one place you can do this.. you can contribute as much as 4K per year.. there are different type of stocks, bonds, and mutual funds you can invest in.. and unlike other ira's.. you don't get taxed for withdrawing your initial contribution (only on your dividends) before you turn 59 1/2 (age)

last? contribute to your 401k if you don't already have one.. my suggestion is to throw at least as much as your company matches.. that's free money they're giving you! and it grows tax free (until you withdraw it)

if you stay disciplined and stick to this regimen.. you will be successful.. good luck!

Answer 2

Nasty Neezy actually gives some pretty good advice. However, I'd make the following changes. First, pay off all short term debt. It's no good to be making 10% a year on your savings and investments if you're being pulled backwards by 21% in interest payments. Get out of debt (except for mortgage, if you have one) and stay out of debt.

After that, you can follow Neezy's advice *except* you should do the 401(k) first if your company matches funds. Free money is good and that's an instant return on your investment. Once you get up to the maximum match, go do the Roth IRA. If you max out the Roth IRA, *then* go back to putting money into the 401(k).

As for your IRA account, T Rowe Price, Fidelity, and Vanguard all offer a large family of funds to meet your needs and risk tolerance for investment. Have a look at all of them.

And while you're doing the initial steps of paying off debt and creating an emergency fund, get yourself an education in investing. You're going to have no idea if the advice people give you is any good unless you understand how money works. Personally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It's an easy read and it will give you a firm foundation so that whenever you're presented with a financial choice or recommendation, you'll make an informed decision. No one's ever going to care as much about your money as you are, so you'd better learn how to handle it and make it grow. Good luck.

Answer 3

I would put a certain amount away into an Investment Bond - a lump sum and let the interest build, i would also put a certain amount - monthly- into a savings account. To be honest, i would seek advice from a financial Advisor who knows which bonds etc are the best for you to get good returns on. All the best though. x

Answer 4

work out a small amount that you can afford to lose but would like to play with and get into stocks and shares. Put any profits into a high interest account. In the UK we have 90 days accounts that mean you can't access the funds before 90 days but the interest in high, we also have tax free accounts. Maybe you can invest here or with one of our offshore banks on Jersey or the Isle of Man

Answer 5

Two Steps: One: Save, Save, Save.
Two: Get interested in Real Estate. Find out as much as you can. Research neighborhoods. Fixer-uppers, Rental rates.
Real Estate is the best way to build real wealth. It's not always an easy road but I feel it's the best way to go, rather than bonds or stocks. Invest in yourself and your own projects!

Answer 6

just make yourself a budget, which shouldn't be too difficult, your making good money, plus you have extra income from your music... make a plan to automatically put a certain percentage away from every paycheck, and stick to it... you can have it deducted from your paycheck or just deposit it yourself ... just make sure you have enough to live on and a bit of spending money, and any percentage above that you can bank, or invest in Cd's 401K's etc... you can always add some of the extra money you make from your music to it as well. since I'm guessing that may not be entirely steady income..its great that you are thinking of your future and security now! best wishes!

Answer 7

First get your goals down on paper. What is the nest egg for? Early retirement, and extended tour with the band, or a weekend away?

Then get a plan going to get there. Stick to the plan. Review regularly. Educate yourself about investments. Stick to the plan.

Answer 8

there became a time after I also grew to grow to be virtually broke (no longer because of making an investment in inventory market yet for another reason, that is anotehr tale). My situation became so undesirable that I had to eat nutrients in straightforward words once an afternoon and, on some days, I went with out nutrients so as that i ought to keep funds. i grant you with some suggestion from my adventure in fixing the problem:- Do you stay on your own domicile? If convinced, then supply some area of the domicile on employ. in case you stay to inform the tale employ, then see in case you are able to bypass to a distinct domicile the position employ is decrease. For this, you need to wish to bypass to a house, that is smaller or that is in a lot less advanced section, even with the undeniable fact that it truly is advantageous. Make a habit of writing all of your expenses and each and every so often reivew your expenses. this may help you spot if you're spending on something unnecessary. Spend in straightforward words on what's fairly mandatory and do not bask in any unnecessary issues - no matter how a lot you appreciate those. supply up ingesting outside nutrients because it truly is totally extreme priced. cook dinner at domicile. even with the undeniable fact that in case you do not comprehend the thanks to cook dinner, then also cook dinner even with the undeniable fact that you'll be able to - even even if it really is a few straight forward nutrients. With practice, you'll study the thanks to cook dinner more suitable desirable. See if something you've, that you don't desire and that could be solved, get mutually, some furniture. promote those. convinced inventory market ought to back bypass up yet you do not comprehend at the same time as precisely it is going to bypass up. So take out some quantity so that you need to guard your funds at the moment. save income monetary business enterprise and, as I reported, spend in straightforward words what's fairly mandatory. save minimum quantity at domicile and save something in monetary business enterprise, because funds at domicile tempts one to spend. whatever takes position, do no longer bypass for charge playing cards and do not take any loans. Are you having any pastime? If no longer search for for a job at modern. See in case you are able to carry out slightly artwork type domicile to supplement your income, consisting of, accomplishing practise classes. each and every of the dazzling! ___________.

Answer 9

Invest in mutual funds

Answer 10

Just don't get married;) LOL