Im a 23 year old dad whos never saved a dime in his life. What would be some of the best ways that I can start to put away for my ichild, retiement, investing??? Basically getting money to work for me as supposed to working for money
2007-02-28 00:29:03 · 6 answers · asked by mishawn712 1 in Business & Finance ➔ Personal Finance
For a very clear & simple, no tricks "get-your-financial-act-together" plan, I recommend Dave Ramsey's "Total Money Makeover" book. DH & I (both accountants) have been following it for the better part of 3 yrs. We have learned to budget & stick to it, paid off tons of debt, save for emergencies & major expenses. (They don't teach you that stuff in college.) It is so liberating to have control over our money. I am sure you can do it, too.
One more thing: Dave gets a lot of heat from people who try to make financial mgmt complicated. His plan is so straight-forward that you will wish you thought of it yourself. The thing is, most of the people who criticize his plan are either selling something that will complicate your finances or they are people who won't follow his plan & are still broke. I'm NOT broke anymore...that's how I know this plan works.
Btw, you can get the book on his website or in most libraries & bookstores. There are free archives of his radio show (2wks worth at a time) on his website, too.
You have made a great decision to do a better job of your finances for the sake of your family. I know you can do it, & I wish you all the best.
2007-02-28 00:41:14 · answer #1 · answered by Tom's Mom 4 · 0⤊ 1⤋
Pay yourself first. No matter what your income is, save at least 10% of it before you spend a penny for anything else.
Put the money into a savings account or money market and don't touch it. When you eventually save 3-6 months of expenses, you can then start to put the additional money into longer term investments like mutual finds, stocks, and bonds.
DO NOT buy anything with a credit card that you can't pay off the next month. DO NOT CARRY CREDIT CARD BALANCES.
When you get into the habit you will be amazed at how much you will have saved over time. START NOW. You will be surprised at how 23 turns into 63 in a blink of the eye. Forty years from now you will be proud of what you have accomplished.
2007-02-28 08:37:58 · answer #2 · answered by Scott 2 · 1⤊ 0⤋
Congratulations on thinking far enough ahead to want to save! That's the first step in having a financially secure life.
As for saving for retirement, if you work for a company that has a 401k plan, sign up for it. Then a certain amount of money will be taken out of your paycheck before you even get it. Most companies match at least part of what you save in a 401k, which is like getting free money. You can also contribute to an IRA (Individual Retirement Account), which allows your money to grow tax-deferred until you retire. Those two options are good because there are substantial penalties for withdrawing the money early which should help keep you from using it for something frivolous.
As for saving to invest, get in the habit of taking a certain amount of money from every paycheck as soon as you get it and putting it in a savings account, then treating it as untouchable money. It will probably be hard at first to resist the temptation to use that money when you see something you want to buy, but later in life, you will be very glad you did.
2007-02-28 08:43:53 · answer #3 · answered by Dave W 6 · 0⤊ 1⤋
First start with a savings account. You can get a really high interest rate from http://www.ingdirect.com
You should also open a 401k, just about any investment place (bank, broker) can easily walk you through the steps to do this.
Here is a great article from MSN, start investing with just $100
http://articles.moneycentral.msn.com/Investing/StartInvesting/StartInvestingWithJust100.aspx
If you are interested in stocks and bonds, or 401k, try signing up at www.sharebuilder.com
2007-02-28 08:38:44 · answer #4 · answered by Strategic Sourcing Expert 4 · 0⤊ 1⤋
use coupons etc.. when ever you get a discount, put that money in a savings account... use less power.. put the extra in a savings account.. (then buy gov't bonds that are garunteed to grow). Empty your change into a container, i find i get about 75$ a month... don't eat out as often... just learn to be frugle.... I T ALL ADDS UP!
2007-02-28 08:37:18 · answer #5 · answered by Max 3 · 0⤊ 1⤋
Start off by carrying a large amount of money in your pocket for a while and getting the control not to spend it.
2007-02-28 08:37:41 · answer #6 · answered by denxxchua 3 · 0⤊ 0⤋