Money Advice.......?

Question

i am always broke...no matter what i do...i work full time and go to school part time..i always have like no money left over after i pay bills...does anyone have a solution or a good way to budget?

Answer 1

Actually what you are experiencing is pretty normal for young people, at least it sounds like you are a young person. The bottom line is that you just don't make enough money to be completely comfortable (that's an obvious reality but sometimes people pass over the obvious and it makes it impossible to find a solution) so you have to find a way to reduce your costs, assuming making more is not an immediate option. About 20% of people in metropolitan areas with mass transit don't have a car, and that creates a huge savings, if that's an option. A roommate is another option, but be careful on that one. Another thing I see is people incur a lot of the nickel and dime monthly costs at 10-15 dollars that they could easily do away with. Paying 9.95 a month for a magazine, or 10 bucks for an internet provider when with DSL you don't even need one, etc, so that is another suggestion, to look at these small monthly payments if you have any.

Answer 2

You may need to take money off the top to put into a savings account that you don't have easy access to. That will be for emergencies only... car repairs, appliances, etc. This is not for fast food hunger attacks. Look at the bills you have... do you need to pay what you are paying for things? Can you refinance something at a lower interest rate? Can you substitute something else of value for less cost? Can you increase income somehow by tutoring or typing for extra cash? There are lots of books and magazines that will give tips on saving money. The library is a great resource. Make sure you are taking every tax credit you are entitled to for educational expenses and try to put $$$ into a 401K plan rather than give the money to the US government.

Answer 3

To start, have 5% of your pay automatically deducted and invested or into a savings account, before you even see it. After 2 or 3 months, you should naturally adjust to that.

Then with the next couple of pay raises you get, add that amount to your automatically deducted savings.

Your eventual goal, should be to save at least 10% a year, preferrably 15%, before you ever see it. 10% should go into a tax deferred 401k or similar retirement plan like an IRA, and the other 5% should go into savings for a rainy day and big ticket items like a new car.

If you have credit card debt or car loans, use that initial savings to pay them off first, then start the plan above.

You sound like an awfully busy person, but if you can squeeze it in, read Automatic Millionaire by David Bach. He talks about ways to spend less and how to save and set it up so it's automatic. He's also very good at motivating you to start. It's probably at your library so you won't have to spend anything on it.

Answer 4

Most everyone lives paycheck to paycheck. When you receive a raise, keep living on the amount you had before and save or invest the extra. If your employer offers a 401K take advantage of it and funnel pretax money into it-especially if they match funds-it is free money. See if you have any habits that are leeching money, like a bagel every morning or a magazine you buy off the rack (a subscription would be cheaper, or read them at the library) little things like that can add up to big savings. Hope some of this helps.

Answer 5

The absolutely best way to ensure you save each month is to pay yourself first. Open a savings account and ask your employer if they can directly deposit a % of your wages (10-20% to start) into the savings account and the rest in your checking account. If they can't then set up a recurring automatic transfer with your bank from your checking (where you paycheck is directly deposited) to your savings account each pay period. Seriously commit to living on what is in your checking account only even if that means lowering your standard of living. Trust me on this...commit to it for 6 months and I will bet that you won't even miss the money you are putting away...it's a great tool for young savers.

Answer 6

Take or put ten or twenty dollars aside like in the bank or somewhere secret sort of like paying a blill or perhaps consolidate your bills. This would benefit you a lots.

Answer 7

You are in school. You are supposed to be broke. That way, you won't drop out.

When you graduate, you'll make a lot of money and appreciate the simple life you have now.