Question:

How do my bf and I save money?

by  |  earlier

0 LIKES UnLike

Our finances are a frkn mess!!! How do we start saving money? I dont wanna pay rent for ever. I wanna eventually buy a house! How do I get myself and HIM to buckle down and figure out how we can save money, but still live and have our own apartment?

 Tags:

   Report

5 ANSWERS


  1. Hate to say it but you need to make a budget.  Take a few hours and see where your money needs to go first, then find out where the rest of the money goes.  Once you have done that you can see if what comes in is more than what needs to go out.  Then set aside a little money into an account to start saving even if it is only $5 at a time.  They say time and again that before you pay your bills pay yourself first.


  2. 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 -

    retirement (401K, etc.)

    home

    car (payment, insurance, etc.)

    gas

    cable/electric/water

    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

    (other could be alimony, whatever, things I did not list out but you have to pay)

    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.

    Retirement savings are very important, so if you have a 401K or the equivalent, dont stop contributing to that. I see so many questions here about stopping contributing or taking the money already saved out, dont do that. The value of the compound interest is huge.

    good luck

  3. clip coupons

    buy things on sale

    shop at the dollar store for paper products

  4. You set up a budget and stick to it.  That means cutting out foolish spending and credit cards.

  5. 1.  Have at least 10% deducted from you paycheck and put into mutual funds or growth stocks.  Auto pay deduction is best... if you don't see it you don't miss it.

    2. Enroll in a 401K plan through work.  Make sure to meet the minimum contribution to get the employers match.

    3. Clean up your credit.   That way you can get a loan and stop paying rent.

    4.  Pay off credit cards, and then always pay off each  month.  

    5.  Make buying the house your goal.  Forgo some gadgets and "wants" and put that money toward the house.

    6.  If you own cars... drive them until the wheels fall off.  Put the money saved on car payments into savings or stocks toward the house.

    7.  If you own cars... increase the insurance deductibles to $1000 dollars.  This saves hundreds a year in premiums.

Question Stats

Latest activity: earlier.
This question has 5 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.