How much money should I out away?
What a good intrest rate i should look for?
Anything else you want to add go ahead....Thank you!
2007-03-01 16:13:55 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
1. $1,000 to start an Emergency Fund
2. Pay off all debt using the Debt Snowball
3. Three to six months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give! Invest in mutual funds and real estate
All the while live on a monthly budget, only buy stuff you can afford (pay for in cash), and listen to the Dave Ramsey show (http://www.daveramsey.com/radio/home/). It will change your life.
2007-03-01 16:43:26 · answer #1 · answered by TheOutlier 2 · 0⤊ 0⤋
Best places for your money:
1. Open a high yield savings account or money market fund at emigrantdirect, ING direct, Vanguard, or Fidelity. Put 5% of your income (minimum!) in here each and every month. This money can be used in case of emergency, or it can be designated for certain short term goals (1-2 years) like a new car, furniture, vacation, downpayment on a house, whatever. Don't ever let this fund dip below $1,500.
2. As soon as you have earned income, start contributing you your 401k (or open a Roth IRA and start putting money away in there). 6% of your income is a minimum to start with plus it's usually enough to get the employer match. If you do this from day 1 on your first job, it will never be hard. Do this at the same time as you do step 1 though.
3. How do you afford to do this? The best way to save a ton of money is to keep living like you're 21 for longer than you otherwise would. Once you up your lifestlye, it's really hard to scale back if/when you need to. So as your income rises, don't let your lifestyle shoot up as quickly. Keep your ratty old furniture and your first car for a few extra years before buying new; keep eating and living cheaply even when you can "afford" not to.
2007-03-02 11:08:00 · answer #2 · answered by lizzgeorge 4 · 0⤊ 0⤋
First, deliberately live beneath your means. That means drive a less expensive or used car, live somewhere a little cheaper than you can afford, don't eat out as often as you could, etc.
Next, have your employer do an automatic deduction from your paycheck and deposited into a savings, money market or brokerage account. It depends on your income, but I recommend doing this for both retirement savings, and a rainy day fund savings account. That's what I do.
For a very simple and cheap way to start saving for retirement, open an IRA with Vanguard or Fidelity, and buy their "Target" or "Strategy" funds. They automatically adjust your investment diversification and balances based on your anticipated retirement year.
If you are looking for savings, you can easily get over 5% at the online savings banks. Go to www.bankrate.com to see what the best offers are.
Right now I'm getting 5.35% on my savings from one of the online banks. Most have "Direct" in their name.
2007-03-02 01:20:43 · answer #3 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
Check out bankrate.com for current interest rates on savings accounts. It would be best to maintain a savings of at least 3-6 months of rent and living expenses. If your employer offers a 401k or 403b, look into starting one - they usually have orientations with a financial adviser before you start these accounts. Good luck!
2007-03-02 00:23:51 · answer #4 · answered by MaryE 4 · 0⤊ 0⤋
If you haven't already start a Roth IRA (Individual Retirement Account) and as you become more aware of investment opportunities the proceeds from investing the funds are not taxable untill you withdraw the money to spend.
2007-03-02 00:49:31 · answer #5 · answered by Bullfrog21 6 · 0⤊ 0⤋
Read the The Automatic Millionaire by David Bach.
This is the best book about saveing there is so far.
2007-03-02 00:30:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
1) Open a brokerage account and invest in the ETF DIA.
2) At least 50%
3) I know a company currently offering 38.90% annually.
Top 3 Answerer.
2007-03-02 00:35:39 · answer #7 · answered by Anonymous · 0⤊ 1⤋
I take it you have money left over from your pay checks...GREAT! Best method of saving is, PAY YOURSELF FIRST, THEN WHAT'S LEFT IS WHAT YOU SPEND. you'll have to shop arround for rates, they compete, and constantly change.Not too early to get a 401K, or now there are better options.Get advice, and 2nd opinions.
2007-03-02 00:54:28 · answer #8 · answered by Ronald L 1 · 0⤊ 0⤋
Steer clear of over spending. If you can save atleast $25.00 per week. If you think about it, you can take your lunch 3 days a week to work and there is your $25.00.
2007-03-02 00:23:30 · answer #9 · answered by mama smurf 1 · 0⤊ 0⤋
Buy a house as soon as possible.
Property inflation will save you
money while you sleep.
2007-03-02 00:29:33 · answer #10 · answered by kyle.keyes 6 · 1⤊ 0⤋