How can I start my savings when I am always broke?

Question

We are in bankruptcy, and only have a few months to go before it is over, and we can stop paying the trustee. The forced budgeting was a learning experience, but how can we start any savings plan when we are always broke? We live month to month and can barely make it to the next payday after the bills, bankruptcy and mortgage are paid. I do have a employee IRA, and my employer matches the amount. How do I save and NOT touch that savings for all the $$ emergencies we have? (Broken cars, doctors, etc.)

Answer 1

I cant really relate to your problems, as far as bankruptcy. But I can relate to living on a budget and month to month. What me and my fiance' started doing was first throwing all of our change from day to day in bucket, loose dollars included. Eventualy once it got to around a hundred dollars, we opened up a savings account with it. And still once every couple months we put the loose change and such in the savings account. Its not much, but its not money that comes directly from our checks, and we never know the money is missing, because it was the money left from day to day. We switch out each month and maybe he will put 50-100 in savings from his check, or what ever he can afford, and then the next month i will. And once you get into the habbit of putting the money back, you will eventually adjust to not having the money there in hand. It is a rough start, but it worked for us! And we made a deal to not touch the money without agreeing together that the money will be well spent!

Answer 2

It will not be easy and quick. But you can do it by starting a budget. Since you mentioned that you were forced budgeting and that was a learning experience. I hope that mean you know how to budget. If you already done all the budget that you can, you will need to get a part time job or take on all the over times that you can at your current job. You do work full time, right? I been there, I worked full time and the budget was still really tight, but since I want to start save some money (like you do), I took on a part time job over the weekend. If your employer match up your retirement contribution, don't touch it. That is the best extra money (their matching amount) ever. Good luck, if I did it I am sure you can do it too. =)

Answer 3

If you have an automatic IRA deducted from your paycheck, you will learn how to live on your take home pay. If you look at all you misc expenses, I can bet that you will find 100-200 per month you can cut and save. Example: Take public transportation to work, Have one car. Buy clothes a thrift stores, if you have 99cent store near its a good place for bargains, all items are 99cents. One last thing both you can do is get part time jobs.

Answer 4

Jerrold Mundis' book "How to Get Out of Debt, Stay Out of Debt, and Live Prosperously" is a real eye opener when it comes to examining your day to day financial decisions that lead to distress and pressure. There is a description of it on Amazon, but hey! get it from the public library and start saving today. :-)

Answer 5

Take baby steps, collect all your spare change in one place once a month deposit it in a savings account and forget it. Don't give exact change when you use cash always pay in bills to maximize the amount of change you build up in a month.

Answer 6

I was having trouble saving too I started with $10 a month directly depositied with www.ing.com They are FDIC insured. I don't see the money and they pay a good interest. You can start with as little as I did and it grows.

Answer 7

Find out the areas where you are wasting money and cut them out and save that money ie things you dont need to live