stay with enough money in your pocket for the week without having to touch your savings account ever
2006-07-01 01:45:14 · 4 answers · asked by gc gurlie 1 in Business & Finance ➔ Personal Finance
The first step is to determine what your expenses are. Set up a budget, a realistic budget. That tells you how much you can save. Without knowing that, your task is not impossible but rather a lot more difficult. Next when you get paid, you take your savings off the top, not off the bottom. In other words you pay your savings first. One way to do this that could be somewhat controversial but in fact can help is to invest in a mutual fund that will allow you to periodically deposit additional money into the fund. That way when you get paid, you immediately pay your savings into the fund. That way they will be out of site, out of mind and you will be less likely to want to spend them.
Now there are times when you will absolutely have to touch your savings. Unexpected expenses do occur. You need to take that into account. So you also need to establish a reserve account for those unexpected expenses. That should be a money market type account where you can withdraw the funds when necessary without penalty and build up a reserve of about $1000 to $2000 in that account.
Finally, you need to avoid credit card purchases like the plague. They will ruin you.
2006-07-01 01:58:23 · answer #1 · answered by Anonymous · 1⤊ 2⤋
The piggy bank is on the right track, but I would recommend emptying all coins into it every time you come into the house. Use small cans or jars, and once they are filled, hide them away in a closet so you don't see them. You won't feel pinched if it is just your change, and if you hide them away, the urge to dip in decreases. Every 6 months you could deposit them into an IRA cash account at a bank--this can save you on taxes AND you will be very reluctant to take out the money if you know there would be a (tax) penalty.
2006-07-01 06:09:51 · answer #2 · answered by bistekoenighasteangst 2 · 0⤊ 0⤋
put money in a piggy bank or a savings account or some where where u will for get about it and then on day you will look at it like where did this money come from
2006-07-01 01:48:56 · answer #3 · answered by dee t 1 · 0⤊ 0⤋
one word: Budget
2006-07-01 05:14:31 · answer #4 · answered by homeschoolmom 5 · 0⤊ 0⤋