How can I focus on my savings?

Question

I really want to save for the future but I encounter many distractions like buying loads for my cellfone & for paying computer rentals so I can participate here in YA...

I can't differentiate my wants from my needs!!!!

Thanks for all of your advises....

Answer 1

Set up an automatic saving plan. Where you make an automatic investments every month. Treat it just like one more expense.

Answer 2

Determine how much you can realistically save and treat it as a bill, no exceptions.

Answer 3

Hello - List out how much money you have coming in each month. List out what your fixed costs are (rent/mortgage, car payment, car insurance, phone, cable, student loans, commute costs etc.) If you have credit card debt look at how much per card and which has the highest interest rates.

Then track every penny, every single one, you spend for a month. That will give you a very good idea of where your money is going. Track it by category -

home

car (payment, insurance, gas etc.)

cable/electric/water

cell phone - blackberry etc.

groceries

eating out

clothing

movies/plays (include the popcorn)

books

newspaper (if you already paid your news paper or magazine subscription, figure out the monthly cost and include that)

hanging out with friends (bar, pool etc)

non meal related drinks/snacks (Starbucks, diet coke, snacks)

other

other

and you will see quickly where your money is going. Then you can see if it is all the right places, or if you want to make a change and not buy so many clothes, see so many movies (or pass on the popcorn) etc.

Consider what is really important to you and what is not and spend accordingly.

When you decide what you will change for the upcoming month, be sure to put that money savings somewhere and not just spend it on something else (or put it towards paying down credit card debt). And keep tracking what you spend for at least 6 months. that will help you get into new habits and patterns.

Since "the future" is your goal, open a savings account or something along those lines and have a portion of your paycheck go there automatically each paycheck.  

Good Luck!

Answer 4

maximize the needs and minimize the wants. there's one requirement on how to do that, discipline,.