I can't save money to save my life!!! HELP!?

Question

I am not going out and spending just to spend, I swear...but somehow I can't seem to save it. What should I be doing!?

Answer 1

Pay Yourself First

Open up an online savings account (INGDirect, HSBC Direct, etc.) and set up a direct debit from your checking account. The frequency can be weekly, monthly, twice monthly, etc. Whatever works best for you. You could time the debits to land exactly on your paydays if you have direct deposit.

Also, most payroll companies will let you deposit your paycheck in up to three different accounts. You could open up a savings account and imediately deposit part of your paycheck every payday. You never see the money, so you can't spend it.

Lastly, you need to get control of your spending. Impulse shopping is tough habit to break but if you want to save money, you have to stop it. Buy only things that you "need" instead of things that you "want".

Answer 2

This sounds like a classic case of not knowing where you money is going. Easy!! Get a small notebook from the drugstore and write down how much each purchase you make for the next month.

Then open up your Excel and create a budget using the notes you wrote down regarding your purchases and bills. It will be readily apparent as to where the money is going and why.

You could go ahead and try to cut expenses as a preemptive strike. Cut down on your cell phone minutes and plan. Pay off credit card debt (elminate the cards and the debt). Make extra payments and pay off the car earlier. This typically frees up a lot of cash. Down grade your cable TV subscription. Quit going out to eat so much and begin cooking at home. Buy groceries! Stop buying so many clothes. Stay out of Starbucks. Make you own coffee.

These are all typical things that we, as conusmers, over spend on.

Good Luck!!!

Answer 3

Pay yourself first. They recommend that you put 10% back out of every paycheck. So if your pay period is $1000, you put back $100. Then you live and pay bills off of the rest. It can be done. I put mine in a lock box and keep the key and the box hidden. My wife doesn't even know about it. I have done this for years. When it gets close to $1000, I split it 3 ways and put it in the kid's college funds.

Answer 4

Save it before you can spend it - have a percentage of your paycheck automatically deducted from your paycheck before it reaches your account.
-Have 10-15% of your pretax salary automatically invested into your 401k.
-Have another amount deducted into a money market savings fund for emergencies (about 3-6months of living expenses.
-Then, if you can afford it, deduct another amount into a bond account for any short-term expenses you want to save for (house, car, trip to Europe, etc).
-Once you get used to these automatic deductions, set up your monthly bills as automatic deductions as well.

Be sure to use cash or debit card for your purchases - it will slow you down and make you think about each purchase, instead of blithely charging everything and then getting stunned by the huge bill at the end of the month.

Answer 5

You need to hire a Money Manager and he should collect your paychecks and pay all your bills.