I really am trying to save money to buy?

Question

a car.. I will start workin this month and will probably get 400$$ a week. I want to save money for a down payment at about 2000$. So anyone have good tactics besides making a savings account? nd if I do make a savings account what type?

Answer 1

it's always a good idea to put money you find and your extra change into a jar/box/bowl/whatever at the end of each day. you will be surprised at how much extra money that gives you-I made $32 in 2 1/2 weeks by doing that!

Answer 2

So first of all, congratulations on the upcoming job!

The best thing to do is to see if your employer offers automatic deposit -- that is, they will transfer your paycheck directly into your bank account. If they do, then you can almost always have them split your deposit, putting some into your checking account and the rest into savings.

The advantage to doing this is that you don't have to remember to put the money into savings -- it happens automatically. And better still, the money in your checking account becomes what you have to work with for budget, expenses, etc.; you don't have to worry about having enough "left over" to put into your savings.

Now, as for what kind of account: Most passbook savings accounts pay only marginally more than putting your money in a sock under the mattress. (In fact, if you put your money under the cushion in your couch you'd probably earn more by finding lost quarters when you take your money out!) I think my bank pays 0.25% -- yes, one-fourth of one percent per year, or two bits per year on every hundred dollars in my account -- on passbook savings. However, the finance company that holds my mortgage offers a "linked account" that pays 4.5% per year. I think there's a minimum deposit required to open one of these accounts, but that may not be for all financial institutions; shop around and see what's best.

However, for the duration you're talking about (a few months) and the amounts you're discussing (under $2000 for most of that time), the interest won't be significant. In your case, the critical factor will be just getting the money into the account and not spending it.

Answer 3

Best way to save money is to get it out of your pocket. Put what you do not have to have into a saving account each paid and not one tied to your checking account assuming you might also have a checking account. It is too easy to take money from savings to checking for this to work. Since you have Internet connection, I would suggest an account with ING Direct. Requirements for their service is a checking account to transfer funds to and from and minimum opening deposit, but will give interest rates that compare with short term CD accounts at banks. I know I said do not connect with your checking above, but this account takes 3 business days to transfer money and does not have an ATM card or debit card to stick in your pocket.