Is this a right way to save money for my personality?

Question

I have some bad habits and so I spend all my money and not able to save. I tried different methods and finally I have decided to buy EE bonds for 75 to 100 dollars a month as low as 25 dollars each. And then I pay my bills regularly. Keeping in my bank accounts is not helping me save due to my habits. Whenever I have more money I would like to purchase more EE bonds and not touch it.

Answer 1

Bonds are low return on investment vehicles. Depending on your age and financial situation they might or might not be right for you. Unless you are in retirement (and even then I would advise against it), you should not be too heavily invested in bonds.

Invest your money in a 401k or IRA plan. Have the money deducted from your payroll (or bank account) automatically. Retirement accounts are harder to access than regular accounts and might help you keep away from the money. Invest your retirement money in broad based index/mutual funds (avoid individual stocks unless you are an active/knowledgeable investor). Alternatively you could invest in a target date fund that automatically adjusts its investments based on your target retirement year.  

Answer 2

This book might help.  Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economic  by Gary Belsky.