2006-09-26 03:44:28 · 11 answers · asked by Alex c 1 in Business & Finance ➔ Personal Finance
Saving for long-term or short-term? There are many ways to save but these work best for me. . .
If your company has direct-deposit, you can allocate which account(s) the money goes into. You can have most of the money go to your checking account for expenses but have them deposit $10 ($20, $50) or whatever you can afford each week into a savings account. You might not even miss it--and it's much easier to save if it doesn't have to go through your hands to get there!
Also. . .long-term, if your company has a 401k, you should definitely invest. That money is pre-tax so the impact on your paycheck is several dollars less than the money that you actually allocate. if your company matches your contributions (many do at 25%) then you're getting free money added to your retirement fund.
Good luck!
2006-09-26 03:55:06 · answer #1 · answered by wrknhrdngttnby 2 · 0⤊ 0⤋
Have payroll take the money out before you get your net check, such as investing the maximum into a 401(k) plan or having payroll buy savings bonds from pre-net pay. At home, put all your change in a jar and save a little more that way. It all adds up. Get a Roth IRA as well, because you can withdraw the money at any time without penalty and tax-free because you've already paid taxes on it. That way, if you need to have the money right away, you can; otherwise, just leave it be and it will grow with the joy of compound interest and time. The time to start saving for retirement is yesterday, even for young kids just starting out! The value of time and compound interest is the key.
2006-09-26 10:53:45 · answer #2 · answered by nido_tr3s 5 · 0⤊ 0⤋
Pay yourself FIRST. I have always found that paying myselft 10% of the net paycheck is the easiest way to save money.
Place it in a seperate savings a/c specifical for that purpose. You won't miss it and you will be surprised how quickly those deposits will add up.
2006-09-26 10:55:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If the job offfers a 401K plan with any kind of match, thats the first thing to do, put in enough to get the full match. If no match, see if you qualify for a Roth IRA where you put in after tax dollars but everything grows tax free.
2006-09-26 10:47:40 · answer #4 · answered by Anonymous · 1⤊ 0⤋
invest in your firm's 401(k) if there is one, especially if they offer to match a portion of your salary, save enough to get the full match if you can, but if not anything is better than nothing
another great place to save is with ING Direct (www.ingdirect.com) they currently offer an interest rate of 4.3% and you can get CD's at 5%+ there is no minimum balance required, this is WAY better than what you could get at a traditional bank!
2006-09-26 11:04:22 · answer #5 · answered by smarty pants 3 · 0⤊ 0⤋
every pay day the first thing you do is open a savings account and put in a amount in and every pay day put the same amount in your account..[do not take out funds] make it a habit of it [can be 10 or 20 depending on your budget] and soon it will grow
2006-09-26 15:53:36 · answer #6 · answered by churchonthewayseniors 6 · 0⤊ 0⤋
You could also have the bank automatically take out a certain amount out of your checking and deposit in a savings every pay period. 401K is good too.
2006-09-26 11:13:00 · answer #7 · answered by Maureen B 4 · 0⤊ 0⤋
Once you receive your paycheck,direct to the bank (some of it). No need to splurge. We don't need that much stuff anyway. Better form a good habit once you get down to doing it. You might be filthy rich in ten years time. Good luck.
2006-09-26 10:51:51 · answer #8 · answered by ? 7 · 0⤊ 1⤋
save all your spare cash
2006-09-29 09:05:28 · answer #9 · answered by Anonymous · 0⤊ 0⤋
as soon as you get the check, put it in the bank.
2006-09-26 18:38:49 · answer #10 · answered by GT 3 · 0⤊ 0⤋