How do you save money? What works for you?

Question

I am trying and trying to save money, but it isn't working, something always comes up. Every time we get money I put a chunk of it aside into the other account, and every time without fail I have to take money out of there again about a week later. It's really making me mad, it's not like I am trying to save too much, I don't know what's going on. Last Thursday I put $850 into savings and today I am having to withdraw $250 ($100 for a replacement sattelite dish and $150 for food for a week) then we will need to take out more cash for my partner who is going on a business trip for a week on saturday. It's very frustrating, we aimed to save $1000 a fortnight, but its been 6 months, and we haven't gotten anywhere yet.

Answer 1

Maybe you're putting too much in the savings. Start small then add to it later. When I got married 35 years, my wife made me give her $15 every 2 weeks. Now weren't up to about $600 per month since I retired in 2004.

Answer 2

You should put the money somewhere else and forget about it. If you put it in the bank you will always know that its their. Example: in a shoe box and put the box in your closet, try to forget about it,and no matter how badly you need it dont use it unless its for a real emergency. Pretend you never had it. Every week you can put money in the box. never count how much you have in it because you will want to waste it. When you think you have saved enough you can go ahead and get.

you can put the money in a safe box,under the bed,in the closet,etc

It works for me :]

Answer 3

hello - I think its GREAT that you are thinking of this, and focused on saving.  You are way ahead of the game and clearly on the path to staying there -

here are some more tips and ideas -

List out how much money you have coming in each month (paycheck, alimony, side jobs, etc.).

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.

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 to go. 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. Do you need to have the car you have or is there a way to get a vehicle without a car payment? Do you need HBO?

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

Be sure to put all left over money into retirement 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 habits and patterns that are good ones.

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.

feel free to email me for more info if you like

good luck

Answer 4

You will always find day to day needs that "put a cramp" in your saving abilities.  I'll answer your question with another question.  What is more important, your day to day needs or having that savings should anything major come up in your life?