What is the best scheme to start saving?

Question

I recently have graduated from graduate school and have started working as a music teacher. I want to save money and have fun...what are some good ways someone has found to save money but still live a fun life?

Answer 1

first, make sure you have 0 exemptions on your w-4, so they take out more taxes in each paycheck, you'll get a refund after file tax

next, participate in 401k plan if you have one, max out, 15% of your gross pay, great for retirement. if you don't have 401k and make less than 95k a year, you can contribute up to 4k a year to roth IRA, it's a retirement account that you collect when retire and don't have to pay tax.

next to last, direct deposit a portion(15%-30%) of your paycheck to a savings account with at least 5% interest

and finally, just spent whatever's left in your paycheck.

Answer 2

I'll save the obvious lectures about making a budget and not over-spending on luxuries. Here are some good general guidelines when saving money:

- Before you start stashing money away in a savings account, CD, money market, etc., you need to pay off any high-interest credit card debt that you have. If you can make 3% interest in a savings account but are paying 18% interest on a credit card balance, the money in the savings account could be put to far better use.

- Rather than opening a savings account, look into a money market fund. A money marked is a very low risk investment, while usually earning a moderately higher interest rate than a savings account (5-6% as opposed to 2-3%). Unlike some other investments, money markets allow you to put money in and out very easily. If you run into financial hardship and need to withdraw some money, you will not be charged as long as you stay above the minimum balance (if applicable). You can even write checks using your money market.

- Set a realist goal. If all you can contribute to your savings is $150 per month, then let that be your goal. If you have a good month and have a little bit of extra cash, use half to go out and "have fun" and the other half to add to your normal savings contribution.

Good luck saving for your future!

Answer 3

1) Don't borrow money. Pay your credit card off immediately. There is nothing good or "fun" about paying interest.
2) Use coupons, buy things on sale. There is no fun in waste by spending too much. If you have to wait to buy a good couch, do it. The couch lasts a long time, and you have to live with it. Buy a neutral color and accessorize.
3) Take 10% off the top and put it away (start right away). Unfortunately no matter how much money you have, it will not be enough. Starting immediately will keep you from thinking you have enough.
4) Take 10% off the top and guarantee that you will do something foolish with it. (wine, women, and song and then just waste the rest). If you are frugal you can spend some on nothing at all. Don't die with only a big bank account.

The fun life is more a conscious decision than the result of enough money....

Edit - - - six hours later.
What I left out (somewhat on purpose) was to take the OTHER 10% (waht some would call a tithe) and give it away. That could be to a church, or a portion to a church, but to something that you feel deserves the donation. I didn't say this since church may not be the right thing to say on Yahoo Answers but I really do believe that we are not rich in what we have but in what we can give away.

Answer 4

Good for you for wanting to start saving. It's so much easier if you start right away, instead of getting used to a certain budget and then having to cut it in order to save. The only effective way to do it is to have your money deposited/invested automatically.

1. You have to have retirement savings, and you'll never have too much. If you have a 401k or 403b, contribute to it. If you don't, open a Roth IRA and set it up where part of your paycheck goes to it automatically each month (I recommend Vanguard--see vanguard.com). Put at least 5% in one of those accounts every month

2. You need savings for emergencies, a car, a downpayment on a house, a vacation, etc. So take whatever you can afford (5-10% of your salary at least) and have it go to a savings account or money market fund automatically (I recommend emigrantdirect.com).

3. Spend whatever's leftover! You can spend whatever's in your checking account each month guilt-free because you know you are providing for your future automatically.

Answer 5

Find an amount of money from your income that you can afford to do without every month, Have the bank take this money every month and put it into a "balanced Mutual Fund"

After a few months you will not miss having the money. Enjoy the rest of your income, but when you can, increase your savings amount, because like I said, you won't miss the money being saved after a few months.

Answer 6

Does your employer have a 401k or stock purchase program? Invest in these and start saving. It's "enforced" savings so you know the money will always be put away for you.

If you can't take advantage of programs like that, use your company's direct deposit program to direct a small portion of your paycheck to a savings account in a bank that is not easy for you to access.

Answer 7

The best method is automatic withdrawls from your checking into a savings account or mutual fund account!

Answer 8

go to www.economicinvest.com and see what they offer. The research is sound, and they identify investments that provide a great value, so there are good returns


they also provide investment philosophy and techniques that are advanced and used by institutional money mangers.