Best way to save $4k-$5k over 2 years?

Question

Just as the topic says what is the best way to save this much in 2 years. All types of investment advice welcome. The money would be required in 2 years so this isnt a long term investment. Thanks for the info!

Answer 1

well you will need about 200 a month -- so if you cancel you cell phone interenet service and cable you will have about 75% of it and since you will have a lot of extra time get a second job!!!!

Answer 2

It kind of depends on what you are saving for. If it is for retirement, then do the 401(k) plan where you work. If it is for a vacation or school then that's different. If you save $48.08 per week, then you will have $5000.00 plus interest after two years. Since you need the money in two years you probably want only very safe investments. I would be looking at Certificates of Deposit at the banks and credit unions. You can pick the duration of the certificate (1 month- years and years). I would use really short term ones until the interest rates start going back up so that you are not caught for too long at a really low rate.But check all the banks because the interest rates can be really different from bank to bank.

Answer 3

1) Stay away from starbucks and the $5 coffee.
2) Work and live within 10 miles from each other. Gas, depreciation, and maintenance will run you $.30 a mile for even a fuel efficient car. That adds up to bundle over a year.
3) Live is liveable with just basic cable
4) As for investments, try out short term CDs. Do not put it into a retirement investment account such as a 401k, or IRA. The penalities, and back income taxes you will pay on it after you need it in 2 years will make you cringe.

Answer 4

You aren't going to make money through investments in 2 years, you'll make it from saving from your income. Be disciplined and have a budget that you stick to. Basically you need to save $210/month for 24 months (2 yrs) and you'll have $5k (plus interest from the savings account).

So you need to plan a budget that allows you $210 per month to put into a savings account (preferably one with the best interest rate you can get - look into local credit unions and online banks). I recommend as soon as you get paid you take out the $210 and put it in the savings account - if you do that first you are guarenteed not to spend it.

Answer 5

I opened a checking account at a different bank than the rest of my money. Every week, $50 is deposited into that account from my paycheck and I don't allow myself to ever touch it. Out of sight, out of mind. This adds up to over $2500 per year. Once you get a balance built up, you can look into short term CDs to earn a little interest.

I've also gone through my monthly expenses and eliminated everything I didn't absolutely need. For example, I didn't need a cell phone and a home phone so I cut the home phone and saved $45/month. Just commit that you will SAVE the money from eliminating bills instead of using it as extra spending money.

Answer 6

Most Americans could save that much by making just a few lifestyle changes:

1) Do NOT eat out. Make your meals & lunches at home, and use as few pre-prepared foods as possible.
2) Cut out soft drinks. Drink coffee (not pre-prepared), tea(from bags - not bottled), water or kool-aid(made from packets, not in boxes or cannisters)

Answer 7

try not to spend money. like dont go out and spend alot of money on pointless things. go work harder and keep track of all ur finances.