How can i really start saving?

Question

i am in college and working,the money i get is not alot ,the problem is i am not good at saving,every month i end up using all the money i hd saved the previous month.how do i stick to saving and avoid withdrawing every now and then?

Answer 1

self control

Answer 2

I presume you are spending on unnecessary things, or you would know why. I have always been uncomfortable if I didn't have a little money saved for the unexpected. Of course, there was a time that there wasn't any money left after paying rent and utilities. I just didn't spend anything until bills were covered. Then, I bought food.
The best way to save is to have the money taken out of your paycheck. If that is not possible, open a 'Christmas club' account. It is available at many banks. You will be able to select the amount to be moved from your checking or savings account into a Christmas club account. It is moved on the same day each month. Just be sure that you have enough in your account to cover the transfer. At the end of the year, the money can be withdrawn for Christmas expenses, or kept in savings. Ask how you can maintain a balance in your Christmas club account. Just because it is available does not mean it open season on your savings.
Also, I keep track of my checking account often to confirm my balance, but I first take an amount and enter as a deduction, calling it 'reserve' or 'safety' (example: I actually have $100, so I deduct a reserve of $20. My balance is always $20 less than the banks balance) The reserve insures that I never have an overdraft.
Good luck, you can do this.

Answer 3

Pay yourself first--10% of your net pay should be saved. If you put it into savings bonds or CDs, it will be harder to touch. Since you are so young, I would suggest talking to several investment firms (we use Edward Jones) about putting in as much as you can in a Roth IRA...where it will continue to grow through compound interest and reinvestment of dividends. You (and all you other 20-30 somethings) may not have Social Security or Medicare when you get old like me! If I had to do it all over again, I'd work with someone I trusted to develop a diversified portfolio, with some of your 10% going to your IRA, and the rest into stocks and bonds. Be careful about choosing a firm to help you...have a money savvy friend go with you or check out the "no load" funds offered by Vanguard and Fidelity. Lastly, you don't have a "NO!!" button operating in your brain, so you must first locate that (another user called it "self-discipline") button and then fix it (get off the instant gratification addiction). You CAN do this: you already are good at saving because each month you have money from the previous month. You ARE good at saving: you are not good about spending --retrain your brain 'for you go insane, Jane

Answer 4

The only thing that helped me was to not have access to it. Use a different bank. If your college is far from home, keep your savings in a bank in your hometown. Mail in your savings every month (or every paycheck). You can access it if TRULY NEEDED, but it's not so easily accessible that you spend it on crap.

Also, evaluate your spending. As much of a pain as it is, keep a log of every dime you spend. The $0.65 at the vending machine. The starbucks, ect. You will see quickly where you are spending money unneccessarily, and can start saving more.

Consider working a few more hours a week, or getting a higher paying job or raise at the one you have. Save the extra income as well.

Answer 5

You sound like me!! I'm hopeless at saving too. I've found the best way is to just have no access to it at all. And of course, to cut back on partying, etc. You really have to do it poor for a while. No new clothes, only buy things if you really need them. Remember- it's all for the greater good. Could you put the money into your parent's bank account and tell them not to let you have it? Then there's no way you can get at it at all. Or get a bank account and tell them you don't want to be able to withdraw any money until you're a certain age? Failing that, take the cash out and stash it somewhere high in your cupboard with a big lock on it. Out of sight, out of mind!

Answer 6

As long as you spend less than what you earn and have a personal budget (that includes savings) you can never go wrong. Try the envelope system. Label a few envelopes with categories out of your budget; entertainment, SAVINGS, food, gas, etc. Fill each envelope with however much (CASH) you want to spend for the month (or week). Whenever you need to make a purchase, pull money out of the appropriate envelope. It's a simple, easy, and almost foolproof way to limit your spending and save money.

Answer 7

there are tons of different savings accounts. ask your bank for an account the will work for you. do you not want to give up money if you withdraw from your savings?? they have accounts that penalize you a certain amount when you take money out. just go see the financial rep at your local branch and they will help you out , they might even have an investment program that you can join since when you are with a group you don't need a lot of money to invest and ultimately save.

Answer 8

the onl buy thing I can think of that you can do is buy a big piggy bank with a small opening where you can put in your coins or rolled up bills. Make sure its big, and that there is no way for you to open it without breaking it. It will make you put in change every time you see it to the point where you find your self making change just to fill up you treasure bank. You may think of breaking it at times but your mind will resist because it would rather break it once its full instead of half full. So in the process you will finally save up money...don't put it in the bank because you still will have access to it...especially when you need it. Make sure that if you do, put in rolled up bills they are not greater than $5, anything greater than that and you mind will think that you have a substantial amount and may push you to break it early when you need it. Trick is to trick yourself, that there isn't much in there put just measely change...by the time its full, you'll be suprised by the amount!

Buena suerte!

Answer 9

I write down all the possible expenses for the month before I get my pay. (rent, food, shopping, savings..etc.) Then I put the amounts on different envolopes. One envelope is marked "Rent", the next one "shopping"...so on and so forth.
Never use your savings if it's not a life-and-death situation.

If the item is not necessary, do not purchase it. If you can still use an old item, don't buy a new one. Cook your meals, don't go to the restaurant.

Answer 10

Stop spending is what really helps but i suggest hand what extra money you dont need to purely live to your parents or someone you really trust and tell them no to let you handle the money untill you adjust your spending habits and/or get out of college.

Answer 11

Hi,

Just hide whatever money possible some where and forget about it.. believe me it worked for me.. or you should have great self-control ...

Cheers