Whats a fast, yet not crippling, way of saving money?

Question

i want to save but need to know a good way of putting money away. i either eventually take it out or put too much and then end up comign up short for everyday things and then dig into the savings. ANY TIPS on saving money?

Answer 1

I would advise, if you're not yet already doing so, to:

1. Keep better track of your cash and expenses. Whether you use Excel, Notepad, or some form of financial software, more accurate tracking might point out the (hopefully) extraneous expenses which cause you to come up short for everyday things, and end up depleting your savings.

2. Decrease your expenses. Live a little more frugally if possible. Eat out less perhaps. Cut your spending in relation to other non-essentials (drinks, cigarettes, games, movies, those sorts of things).  The lower your expenses are, the more flexibility you'll have when it comes to saving.

3. Bring in additional income. Sell items you own that you no longer need perhaps. Or maybe find part-time work, or additional full-time work, or both.

4.  Set aside a certain percentage of your income, or a certain fixed amount from each paycheck, which you can automatically plow into savings.  By keeping better track of your finances, you should have a clearer idea of how much is available to save.

Then, make it more difficult to pull your savings out.  Don't just park it in a regular bank account.  Consider at least a time deposit, or other financial instrument, which offers higher returns but requires longer deposit periods, and is more difficult to withdraw.

I hope this helps.

Answer 2

hello - here are some tips and ideas -

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 (rent/mortgage)

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.

Is there anyone you can commute to work with? Or maybe a different way to get there? or even working from home one day a week? Save on gas that way. Maybe bring lunch to work? Less starbucks or sodas etc.

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.  In your case I might talk to a fee only financial advisor and consider opening an account with their guidance for savings.  

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 3

This is a very simple concept. To save more you need to earn more and spend less. That may mean getting a second part time job or a better primary job or selling things you don't need on the income side. On the spending side you need to stop spending money on things you don't need. And buy on sale those things you do need. Eat out less, stop drinking and smoking. If you're too weak to curtail your spending there's nothing that I or anybody else here can do to help you. It's your problem. Good luck.

Answer 4

get a litlle piggy bank type thing and keep all your coins. and everytime it fills up cash it in. it turns out to be a lot!