What is the best way to save money??

Question

I have a coin jar that is up to my hips, it has pennies and silvers. I just want to know other ways of saving money and the secret techniques people use to do it. Please help this poor girl who loves shopping more than life!! Ekkk

Answer 1

Directly deposit a portion of each paycheck into savings. This way, you never even saw the money so it's relatively painless. The secret to my saving isn't really a secret but more of a mindset. Whenever you make a purchase, stop and think: is this thing I'm buying truly worth this money? Will the benefits of this purchase outweigh the costs? Can this money be put to better use in the future? I would also recommend buying Microsoft Money to budget your money and track your income and expenses.

Answer 2

Here's another approach that you might like.

Open a savings account with ING direct and link it to your checking. (Just go to ingdirect.com to get started or do a Google search for ING to find it.) You get paid over 4% for any balance (closer to 4.5% these days). They also have CDs, with apparently no minimum balance. The CDs earn 5% or more for terms of 6 months and up.

The cool thing is that ING might just put $25 into your account just to get you to open the account at all (with $5 let's say.) That's an automatic profit right there. (Ask about it or look for an advertising flyer they send in the mail).

The next cool thing is that once you link it to your checking account, you can transfer money into it over the internet just by clicking a few buttons. The money takes about 5 days to become available for withdrawal, but that's OK because your goal here is to build up savings.

Each day, if you wish, you can log in and see how much interest your money has earned month to date at ING. They show you on the screen day by day. Even if it's just a penny or two at first, it's fun to watch it grown.

How to find money to save? Many recommend setting aside 10% of your income. If that's too hard, start at 1% and work your way up when you feel ready in the future.

Another approach you can try is to look at your life. Are there activities you really shouldn't be doing that much -- anything? Eating fattening food? Biting your nails? Screaming at people? Whatever it is, decide on a "tax" that you'll pay every time you end up doing it. A small amount but something to make you stop and think. I decided that if I eat a fattening food, I pay a 200% "luxury tax" to my savings. If I spend $2 on a bag of chips, that's $4 I must put into ING savings that same day. I've also decided that every time I spend money on something I don't really need (discretionary expenditure), I'll put 10% of that same amount I spent into my savings.

Lately I've also been putting into ING 100% of the money I find and 50% of money from recycling bottles. It's just pennies but it feels good to keep adding to the fund.

I also put 1% of every paycheck, the same day I receive the funds. I'm going to start increasing that soon to 2% & work my way up to 10% in time.

Make whatever rules work for you. Just keep putting money in, and little by little your savings account will grow. When you're ready, open a CD (also easily done online at ING) and watch your money grow even a little faster.

If you get a windfall - an unexpectedly large check that you don't need to spend right away or that you'll be spending in a month or two, put it in the ING account in the meantime and watch your interest earnings really grow. Then place an order to transfer the funds back to your checking account about 2 days before you need the funds.

You can do this! These are just a few ideas I'm having fun with, and it really is fun to watch your money grow penny by penny, or sometimes much faster. I now have a small ING savings account and two CDs with ING, both for 6 months, with different dates they will be available again.

Since my goal is financial independence, my commitment is that once the money goes in, I will keep it invested one way or another until I am financially independent. I've let it start growing at ING, then later I'll buy into higher earning investments (but not speculative ones), and eventually I'll make a down payment on investment real estate, which I've not done before but it has paid off very well for some people.

Answer 3

Easy open a savings account and forget about shopping unless you REALLY need the product. There are some stuff that you buy, you might not need. Just repeat to yourself "Too expensive for me". It works for me. I am drowning in debt and I finally learned not to buy stuff anymore unless I really NEED the product and that I have back up savings account.Two sources below especially Bank of America. they have keep the change program. Let's you save your coins and put it in your savings. Ing Direct lets you link your checking account to your savings account. Good Luck.

Answer 4

when you are about to purchase something, ask yourself one question: do I really need it? there's a different between "need" and "want" when it comes to shopping. you can open all the savings account you want and transfer part of your paycheck, but those savings account worth nothing if you don't learn how to stop yourself on acquiring things that you don't really need.

Answer 5

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http://investing.sitesled.com/

Good Luck and Best Wishes!

Answer 6

I just read "Investor 2006"'s answer. NOT BAD. Read it and give it some thought. Your question was the very first he/she answered. You ought to be honored. I have been answering questions of a long time and I can not advise you any better.

Answer 7

Kitty is wise every week I take out $50 from my check and send it to my online bank.

Answer 8

Open a savings account. At least your savings will grow with interest! :o) The longer you leave it there and add to it, it will grow!!

Answer 9

"Pay yourself first"

Have money taken out of your paycheck and direct deposited into a separate savings account every paycheck ... you never see it, so you never spend it!!!

Answer 10

ALWAYS spend less than you make.