What is the best way to save money? Im looking for a method, not things like, "cutting back on things"..thanks

Question

Does anyone have a really interesting place or way to keep your money? ie- a "fault proof" method?

Answer 1

This is a two-parter -- where the money comes from, and how to get it into savings without blowing it all first.

Part 1: Get out of debt by paying off all your credit cards. The best way to do this -- pay off the card with the highest interest rate first (not the highest balance!) as fast as you can, while making minimum payments to the other cards/debts. When card #1 is paid off, take the money you HAD been paying to that card and add it to the minimum for card #2. Then add THAT to card #3. Get the idea? Nail the worst interest first -- that'll cost you the most money in the long run. So for example, if you have three cards with $25 minimums but you can squeeze another $25 out of the budget, you pay $50 to the card with the highest interest, till it is zero. Then you take that $50 and add it to the next-highest card's $25 minimum and you pay off card #2 at $75 a month. Then when card #2 is dead, you pay $100 a month to card #3 and it's gone really fast.

Then you have $100 a month to put into savings.

Part 2: Once you no longer have to spend this money on credit cards (or other debts), you can save it. To help with this, sign up for automatic deposit with your employer. Open a savings account (if you don't have one) and have the amount you used to pay your creditors stuck into your savings every payday.

The rule there is "Pay yourself first." If you just have the money stuck into a savings account before it even makes it into the checking account, it's not there to spend. (You only have to have discipline THEN about when you take money out of savings.)

Now... In practice, you can do Step 2 first. The real trick to saving money is to save a little bit ALL THE TIME. Even if you can only put $25 a week into the bank, that's $1300 a year, without interest.

Tip: If your employer offers a 401(k), sign up NOW for as much as you can afford. You get a BIG tax break on these programs, because the money comes out of pre-tax dollars, AND it reduces your taxable income by the amount you contribute. It typically costs you about $78 in actual take-home pay to put $100 into a 401(k) because of the tax benefits. And keep contributing to it no matter what; you don't have to pay taxes on it till you take the money out at retirement, and then you only pay for what you take out each year. It's a great way to build for retirement.

Answer 2

There's a great book out there that's helped a lot of people I know, myself included, recover from the brink of disaster, as it were. Secrets of the Millionaire Mind is actually about your relationship with money, and how to save effectively. And, strangely enough, it *doesn't* advocate putting everything towards credit cards first (you'd never have anything left to save), but this "pay yourself first" approach. Cheapie book you can find on eBay or Amazon, I'm sure. Author is T. Harv Eker. For a limited time, when you buy the book, you can go to a local 3-day intensive seminar that will really put you on the right track!! [ I don't get paid for sending you there, so no ulterior motives !! ] It's legitimate information! Anyway, my two cents, which will multiply into four ...

Answer 3

Keep a budget. Make a list of everything that is a necessity, like bills, and how much you spend on food. Then stick to it, it is amazing how much money you will save by just keeping to a budget. It is also important to put a little extra money for something fun, like a meal out every month or so, or going to the movies on a sunday afternoon. That way you don't feel like all you are doing is working and it gives you something to look forward to.

Answer 4

Two solutions:

1) I've heard this works amazingly well: Try to save $5 a day, and put that $5 somewhere you can see it. watch it pile up!

2) Have a portion of your paycheck be sent to a savings account that you don't have access to, except under certain conditions. Most banks will do this for you.
- This is what I do to save for big expenses, as well as recurring ones.

Answer 5

How about dispersing your money into certain areas e.g 20% of total earnings spending 30% to savings and 50% to living costs. There are lots of formulars like this that are highly recommended. Go onto the Dr Phil website he has one.

Answer 6

Never pay any late fees.
always pay bills by date due...
do not pay the "pay after this date" ammount. pick up pennys from the street while you get gas or into a store.
Develop a 13 month hypothetical year for your rent or house payments,meaning= Make your rent/mortgage payment every 4th check of the month, and if you stick to this plan, you'll have a FREE check every 6 months as you can a calender with every forth payday marked.

Answer 7

The best way to consistently save is to PAY YOURSELF FIRST. Most people pay their bills, their debts, their living expenses, their entertainment expenses, and when they are done, surprise! The money's all gone! Decide on a certain amount or percentage from each paycheck, and pay yourself first. Then pay for everything else. Put yourself first- no one else is going to.

Answer 8

This is what i do. I will deposit money in the bank but not count it in my check book. so it i deposit a 300 dollar check and don't want to spen 100 i will only put down 200 deposited in my check book. that way when i buy things or pay things it only seems i have so much money

Answer 9

Get a better job or a second job and save the extra money you'd be making, then you won't have to cut back.

Answer 10

Put a little bit aside each week from your pay check. AND WHAT EVER YOU DO>>> DO NOT GET A CREDIT CARD ...trust me....