I need help managing my finances?

Question

Im 21. I have a gov't job thats very secure. I've been working there for about 2 years.I make around 49,000 a year. I dont know where my money goes. I have a new car the monthly payment is $545/month. I buy nice clothes, perfumes,shoes,etc....And I only have $400 saved..Help!!!

Answer 1

write down all the must haves food gas electric car payment insurance.


add it up then list everything you spend.if they are not on the list cut it out!!

make yourself a deal make your paycheck direct deposit with a savings account attached place 50$ every payperiod that goes in even before you see it .dont touch it in a few months you will see just how well you can manage and have a good little nest egg built.

Answer 2

Basically, you bought a car you can't afford and you are spending way too much on clothes. I assume you have a rent/mortgage payment as well. If you DONT, such as, if you living for free somewhere, then you are REALLY blowing a lot of money. That's damn good money for 21, but that 545 on the car is way too much for a 50k type person, and of course you have insurance and other costs with the car. The nice clothes on top of that, well, you are pretty much spending half of your income on a car and clothes, then assuming you are paying rent, your money is pretty much gone. If you are a federal employee, start your TSP account TOMMORROW, at least 125 bucks per paycheck if not a little more so that this money is gone into savings before you even see it. Stop spending so much on clothes and shoes and other girly crap, that's completely unnecessary and a waste and next time you buy a car, come down a little and get something affordable. The bottom line is, you're trying to live like you're 43 years old when in fact you're just getting started and that's costing you huge money right now. Go into saving mode and get out of spending mode. You'll make more money as you stay in the workforce, but you are rushing it too much on the spending side of the equation.

Answer 3

1.) Start saving for retirement now. Enroll in whatever you have at work (even if it's only for 1%... I KNOW you can do 1%!!!) Once you see how easy that is, bump it up a little at a time until you're saving around 10%. Put your money in a low-cost stock index fund (check out John Bogle's new book, The Little Book of Common Sense Investing for more in index funds.)

2.) Set up a money market fund with a good interest rate to be your emergency/ short-term goals savins account. Shop for a good rate at www.bankrate.com. Sign up for automatic withdrawals from your bank account every time you get paid. Even if you just start at $20 a month, START, and once you see how easy that is, bump it up to $30, and then more and more, so you can meet your financial goals.

3.) To get your spending at a reasonable level, ("reasonable" being both something you can live with and be happy and where you won't totally blow your budget) give yourself an allowance in CASH. Figure out how much you could reasonably spend on fun stuff each month and still have the money you need for things like rent and bills and savings. If you have cash in your wallet, you can buy that perfume guilt-free! If not, wait until next month- it's not going anywhere!

Above all, don't be too hard on yourself- you're 21! Yes, it is important that you get your financial house in order, but if you take these basic steps, you'll be in great shape. I would also recommend Suze Orman's book, The Money Book for the Young, Fabulous and Broke- it's got tips designed for where you are in life. Good luck!

Answer 4

Start with the bank.
They know what they're talking about and they're free.
Good luck.
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I can understand being 21 and wanting a new car,. but if you're going overboard with clothes and perfume, you have to take a hard look at this area.