Saving Money....?

Question

Hello,

What are your best tips for saving money?.....

Answer 1

Get a second bank account and have a direct deposit from account 1 to account 2 every pay day. Make it a reasonable amount so that you do not have to go back and withdraw. Even $10 per pay is something. My son did this and bought a motorbike and now has a good holiday fund.

Answer 2

Assuming you are working and earning money, the best and easiest way to save money is to save 25% or 50% of your next raise each and every month. For instance, if your next raise is $50 per month after taxes, save $12.50 or $25.00 of it each month. Do the same for your next raise after that, and the next raise after that, etc. Every time you get a raise, you will be spending more each month and saving more each month. Of course, keep your spending in line with your after tax income. Don't just save money and then borrow money on a credit card to meet your expenses. Except in the event of a true emergency (e.g., a medical crises), NEVER buy something you can't afford to pay for in cash. The exception to this rule is buying a home by taking out a mortgage. A car may be considered another exception, but if you must finance it, get an economical (but reliable) used car and keep it until it can no longer be repaired.

Answer 3

not spending money is the best way to save, everything you make goes right into the bank account

if that's not possible, try paying yourself first before paying others. Automatically deposit 10% - 20% of what you make into an IRA, you won't be able to spend that money until you are 59 and a half

then spend your money wisely, pay your bills, only buy things you need, not what you want

Answer 4

The best way to get started is to set up automatic investment with a mutual fund. Some will let you start with $50/month if you set up automatic investments (that draw directly from your checking account). It may not sound like much, but it will surprise you what it will do for you. I started that way over 10 years ago and it has made a HUGE difference in my life, and Net Worth.

Answer 5

We're in the holiday season, so I'll start there. This article gives holiday spending tips, to minimize the holiday hangover as we call it: http://financialbasics.blogspot.com/2006/12/holiday-spending-tips-ten-ways-to-keep.html

This next suggestion is not something you can apply this year, but it could definitely help you next year. It's called a Christmas Club Account : http://financialbasics.blogspot.com/2006/11/holiday-shopping-without-debt.html

Now on a more general basis, I have 4 suggestions.

Create a budget : http://financialbasics.blogspot.com/2006/11/personal-budget-planning-tips.html

http://financialbasics.blogspot.com/2006/11/creating-budget.html

Rein in your spending. The budget will come in handy at that stage:
http://financialbasics.blogspot.com/2006/12/how-to-simplify-your-living-expenses.html

Use credit wisely:
http://financialbasics.blogspot.com/2006/11/use-your-credit-card-sensibly.html

Finally, invest:
http://financialbasics.blogspot.com/2006/12/ways-to-help-you-invest.html

I think you have the whole picture now :)

Answer 6

I agree with Jean.. another suggestion is always spend less than you make..well.. it is easly said then done..