Question about saving money?

Question

I'm 17 and concerned about saving money. I've been working since I turned 16. I was really excited to start making my own money and worked at McDonalds as soon as i could. I've been working in retail now for about 7 months, and i'm making better money, but saving like none, and I've spent almost everything i had saved! What can I do to save more money? is there such thing as a savings account i can only put money into, but cant take out of until i've reached a certain point?

Answer 1

Can you have some of your money stopped from your wages and directed to a bank account (savings account gaining interest would be even better)?

Here in Ireland, there are savings accounts with high interest rates,  you commit to saving between €10 and €300 per month.  To get the high interest rate, you are not allowed to make any (or very few) withdrawals, so your money is less available and you won't be tempted to spend it.

I'm sure there is something similar where you live.  You may be able to find out online.  Try a google search for 'savings plan'.

Answer 2

Actually, IRAs (retirement accounts) are like that.  You put money in and can't touch it without penalty until you're 59 1/2.  You should really start saving in a Roth IRA now.  The money you save now will grow a lot by the time you retire.  Believe me, you'll be glad you started to save early.

In addition to saving for retirement, you should save a percentage of each paycheck before you start spending.  Once the money is in savings, don't touch it for any reason.  Just pretend it doesn't exist.  I think you should save 10% in a regular savings account and 10% in a retirement account.  Get in the habit now.

Answer 3

The only thing I can advise is to put the money in the savings account and not pull it out. I'd gladly invest it for you, just write me a check.

there are things called CDs (Certificate of Deposits), which you can lock in your investment for a period of time, ranging from years to decades. I do not recommend them, though because if you pull out early, you get penalized. Also, most online savings accounts offer comparable APY, yet are as liquid as a checking account.

Answer 4

Just start by regularly saving a very small amount (that you will hardly notice) As that build into a reasonable sum it will give you the incentive to save more. When I first started work i used to leave my pay packet (yes it was cash then) on the hall table or somewhere. My mum would take out a fiver or so and put it into her savings account. I didn't notice! Some time later I would say"I wish I could afford that new shirt or whatever" and she would say "here you are, thirty pounds".

"Oh, thanks, mum" I would say. She replied "don't thank me it's your money!!"

Answer 5

You have to start thinking S-M-A-R-T. What kind of cutbacks can you make? For example: I drink bottled water. Now at $1 a bottle on something that covers over 65% of our planet is not smart. So I bought one of those water filters that s***w into your faucet. I have bottles that I refil over and over again. I take them to work. Do you have a lot of small appliances around that house that are always on? I cut my electronic bill almost in half by unplugging all the clock radios and night lights. I also bought some of those florescent bulbs that look a lot like a regular bulb. These things use 80% less electricity than regular bulbs. You would be surprised, but these small things add up. I know I was spending money on the water filter and energy efficient bulbs but these things will pay for themselves in a month providing they pertain to you. If you really need the money right away start cutting back on your food costs. Romain noodles cost a dime and they taste just as good as campbells chicken noodle that costs $130 a can. Ok no chicken in romain noodles, but you are probably just missing about 4 tiny pieces of chicken. Put a brick inside your toilet 'chamber'. You will use a little lesser water each time you flush..Before you know it you will be ahead. Wanna be creative? Find yourself leaving lights on? Buy a motion sensor switch, the lights will turn on when you enter the room and will turn off (by a set amount of time) when you leave the room. I have one, they cost $15 at HomeDepot. Need new windshield wipers for your car? Who says you have to buy 2? You only need the new one on the drivers side, leave the old wiper on the passenger side.  So remember you have to start thinking S-M-A-R-T! Yours truly seahorsehawrey.