2006-11-01 02:36:44 · 10 answers · asked by jammie1607 1 in Business & Finance ➔ Personal Finance
Step one is to realize that although you aren't going to live forever, you're going to outlive your money if you don't start holding on to some of it.
The next step is what they call "paying yourself FIRST". Pick a set amount or a percentage of your take-home pay and set it aside before you buy food, pay the mortgage or rent. Force yourself to live on what's left. You have to have a cash reserve so that if you lose your job you a) don't lose your home and b) don't have to take the first thing offered to you. A cash reserve means having more choices when something bad happens.
Once you successfully start doing this, you'll feel differently. You'll be, by one definition, "rich" in that you take more in than you pay out.
The third basic step is making a budget. Be honest about your income and expenses. Track income and expenses to compare to the budget, and to look for places to cut unecessary expenses, or other ways to get more from your money.
It takes a while to get those down, but once you do, you'll be better equipped to understand how to start putting the cash reserve to work for you.
2006-11-01 03:03:56 · answer #1 · answered by open4one 7 · 0⤊ 0⤋
What I do is Automatically when my check is deposited I subtract 10% from it and that stays in the bank every week (for savings). Then I make a list of all the things that are on my calendar that need to be paid that week. Then I add them up and subtract that from my check as well. Then I make a list of all the necessities that are needed for the week (like food & gas). Then I subtract that from the check as well. Then what ever is left I get to spend Usually. I do the same with everything in my life ie; the kids, lunch, dinner for the week.....etc.
2006-11-01 11:10:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Actively. realize that savings in a bank never beats inflation after taxes so don't get trapped into thinking it is "safe". Yes you will have some there but will not be worth as much in the future. Market does not have to be risky. Diversify. Pay down debt 1st & retirement acct investing comes next as helps with tax planning. Reits, Index funds, gold, global funds - put something together then hands off.
2006-11-01 10:42:05 · answer #3 · answered by vegas_iwish 5 · 0⤊ 1⤋
Make notes on your calendar of dates that things are due. Plan out your budget and each pay day, pay all of the upcoming bills for the month and have a portion of your checks directly deposited into a savings account and don't touch it.
2006-11-01 10:43:14 · answer #4 · answered by Diamonds_4Ever 3 · 0⤊ 0⤋
always pay yourself first and live on the rest. put a specified amount of each paycheck in a savings account and let it grow. get into a 401k asap and let it grow. live on what is leftover. if you do this for along time you will have a very nice amount of money.
be very careful with credit. do not use it unless you absolutely cannot help it. build wealth instead of debt.
2006-11-01 10:40:49 · answer #5 · answered by SKYDOGSLIM 6 · 0⤊ 0⤋
I use the 10%, 10%, 80% rule. 10% first to tithe if you go to church and if not to a charitable organization or to your community. 10% to you and 80% toward your debts and if there is any left over invest it into something or tuck it away into savings till you have enough to invest.
2006-11-01 10:49:38 · answer #6 · answered by Laura S 4 · 0⤊ 0⤋
Don't give it to Charlie Manuel. He's a lousy manager.
2006-11-01 10:39:43 · answer #7 · answered by jinenglish68 5 · 0⤊ 0⤋
save some spend some
2006-11-01 10:38:55 · answer #8 · answered by Mary Smith 6 · 0⤊ 1⤋
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2006-11-01 10:39:40 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Give it all to me. I will take care of everything for you.
2006-11-01 10:38:26 · answer #10 · answered by regerugged 7 · 0⤊ 1⤋