Tips for Saving money?

Well, I recently got a pretty decent raise at work, and I have always been terrible with my money. I am looking for tips for saving up. I know this sounds dumb but I just cant seem to bank anything away

Do you have a credit union at work? If so, start an account, and have them auto-deposit somewhere between 10%-20% right off the top of each paycheck. You won't honestly miss it if you never "see" it. Ditto if they have a retirement plan, particularly one where there is an employer-matching contribution. The more money you can get safely out of harm's way before that check hits your pocket, the better.

Other than that, it's all in self control. Pack lunch instead of buying it every day. Buy fewer or cheaper toys and go out less. Don't know much about your lifestyle, but there is an incredible amount of money that can go up in smoke by eating, drinking, smoking, or otherwise burning it for extremely-short-term entertainment.

On another note, how about this? Ignore your raise. Pretend you didn't get it. Figure out how much it is per month (take home), and start a savings account that automatically transfers that much into the long-term account every month. Again, it's all about getting the money somewhere safe as quickly as possible, rather than having it sit around trying to convince you you're rich.

Do you have a budget set up? If so then you should already be living around your current pay. You could do like Duke said and put that percentage of money direct deposit into a savings account. You really don't miss allotments (I thought I would for the longest time.)

If you don't have a budget, I recommend setting one up. The envelope method is a great way to start. One envelope for monthly bills, one envelope for groceries, one envelope for gas, and one for Misc/play is usually all you need to get started. From there you can add categories/money as necessary (pets envelope, barber/salon envelope, auto repair, home, etc)

The trick is to NEVER borrow from another envelope. Out of play money and it's the superbowl? better get creative quick.

Well...where do we start?

OK, basics. Do you buy any stuff that is fashionable/conspicuous consumption? If so, first thing to do is drop that E36 M3. You want to buy good value for money, which is usually not the cheapest stuff but is not the expensive stuff either. This includes food especially.

For example, a lot of suckers buy new phones every year, or sometimes even more if they break them (another basic of saving money is: Don't break stuff, take care of it). You want to buy a good new phone that will last you at least 3-5 years before you upgrade, and you want one that's not too expensive and won't suffer from planned obsolescence, which basically means no Apple stuff.

Credit cards. These are dangerous. Avoid credit card debt. Ideally you want to be paying it off fully at the end of every month, if you must use it at all.

Cell phones - these can become a giant money hole, use them sparingly, minimize the use of cellular data. Family plans can save a lot of money. Use WiFi and web chat programs to communicate for free.

Look at your running costs. Is there anything in there you could do without, like cable TV these days?

Entertainment - avoid partying at clubs, this pisses away tons of money and often leads to Breaking Stuff (remember you need to avoid that).

Duke wrote: On another note, how about this? Ignore your raise. Pretend you didn't get it. Figure out how much it is per month (take home), and start a savings account that automatically transfers that much into the long-term account every month. Again, it's all about getting the money somewhere safe as quickly as possible, rather than having it sit around trying to convince you you're rich.

This^

When I started working, I would have a big goose egg by the next paycheck, then with a raise, I started putting that money into my savings. Now I do more, but I also do more with 401k and Roth.

It also helps have a wife that takes interest into the logistics of our own financial planning.

On another note, how about this? Ignore your raise. Pretend you didn't get it. Figure out how much it is per month (take home), and start a savings account that automatically transfers that much into the long-term account every month. Again, it's all about getting the money somewhere safe as quickly as possible, rather than having it sit around trying to convince you you're rich.

BINGO

The only way to save money is not to spend it. Before I see a dime from my paycheck, most of it goes into college funds, retirement accounts, savings accounts, child support and accounts that accounts that fund auto-payment of mortgage and other fixed expenses. If I have something left over, my wife sometimes lets me buy ice cream.

Sit down and write out a budget to figure out just what you're spending every month. Once it's down on paper you'll have a better idea of where you can save money.

1 Stop reading/using this board...damn bunch of enablers.
2 Find another hobby besides cars, especially race cars...damn consumables.
3 Don't get married...damn wife.

We need more details to really help you. Do you have debt? If not, I would make it a could to make out a 401k or IRA account every year. Ways to save money? First things I would look at are car payments and how often you eat out.

The budget my wife and I use is called "within your means." Warning: it's a hefty thing, took us about 3 or 4 evenings on the couch to get set up right.

The basic tenets of this is that you have to go onto a cash budget (at least for a while to get used to it). Of course it covers the basic savings (I want to have $X in safety net, so I need to save $Y per month to reach it), but the thing we liked about this one is that it helps you calculate how much you need to save just to maintain/replace the stuff you already have. For example, every month, I'm saving money for if the fridge dies. If mine dies tomorrow, I have the cash already in a "replacement funds" account to cover it. I have tire expenses in there, so when I have to buy $500 worth of tires every 2 years, I've already been saving $20 per month towards it. Just pull it out of the replacements fund.

Big warning, though! The first two months of trying to be strict with a budget were PAINFUL! I never realized how much money I was throwing away on stupid stuff that was instantly forgotten about! "Oh, I'll just grab a drink on the way home. Fries? Sure!" Then go home to eat dinner. "Oh yeah, that widget is cool, and I'll probably use it all the time, and what the hell, it's only $20!" Then it sits at the bottom of the drawer. Stuff like that. When it's cash-in-hand, it's a lot more real.

Now, after a few years of that, we do everything on a American Express Blue Cash Back card, it costs $80/year for the card, and we get ~$1200/year back from it. But you have to be able to stay strict in your budget!

Sorry I didnt elaborate on my expenses. I do not go out and buy fashonable clothing, Dickies and T shirts for me. Currently I have about 450$ in Credit Card debt at...wait for it... 22.5% interest. I put 50$ a week on my card. No car payments, I own it out-right. I have stopped going to bars/pool halls and rarely drink at this point. I tend to spend a decent amount of money on vehicle upkeep because I am OCD with maintaining my stuff. after reading the "envelope method" I just got a stack of them and started writing my expenses down, but at the end of each week do I take the money from my bank account and put it in there as cash then deposit it for the bills?

And for some reason I drive 30,000 miles a year and live 17 miles from work -_- car gets 25 winter and 29 summer.... time for a civic

I keep a second bank account at a credit union, that's now an hour away since moving. All tax refund checks go there and a percentage of my paychecks. I don't pay any bills (from that account) or look at the monthly statement, so i 'forget' about that account until it's absolutely needed.

Look at combining things - we saved some cash by getting internet, phone and cable through one provider. 2 months ago we dropped cable TV entirely. Bill went from $150 a month to $81.

If your not maxing your 401K or 403B then do that first. Then after that is maxed start a IRA if you can. After both are filled then move to automatic deposits into a vanguard account with your risk profile of choice.

The most important thing is to be comfortable in the lifestyle that you have anything extra goes to the above, bonus, raises, money found in the comforter.

tjbell wrote: after reading the "envelope method" I just got a stack of them and started writing my expenses down, but at the end of each week do I take the money from my bank account and put it in there as cash then deposit it for the bills?

I guess "bills" wasn't the best title for an envelope when I gave the example, but it still fits in.

What we do:

We have our set monthly expenses and these never change. They include Cable, internet, phones, house, electricity, utilities, garbage, car (we only carry one car payment) and insurance (I think that's all of them). We pay these at the beginning of every month but never actually take the money out of our account in cash form. We write a check, pay online etc (but no direct withdrawal).

Our envelopes include: Grocery, Gas, automotive, pets, salon, and misc. (I think that's all of them anyways). We determined how much we need a month in those envelopes and withdraw half that amount on the first and 15th. When the envelope is out, well then tough stuff. If there's a surplus, then it carries over. (When grocery gets enough $$$ we might order pizza or go out to eat)

We also have a (very small) allotment that goes to a checking account for play money (something like $50 a month for me and $50 a month for my wife). This is to buy my beer, car parts, ammo, guns, or something of that nature (my wife buys shoes and pedicures). It used to be more, but pay cuts = allowance cuts.

We found that writing a menu of stuff that you are going to cook for the week before you go grocery shopping is a great way of saving money on your grocery budget.

Anyhoo the best example I have of this working was getting laid off from San Antonio Aerospace. I was earning a bit over $25 an hour and got canned. The other local aircraft repair facilities were also laying off, so I got a job waiting tables (again) while we weathered out the storm. I think I made $10 an hour at TGI Fridays? anyhoo I do remember the only sacrifice we had to make was cutting our cable... We went from a $110 a month package to something closer to $20. Unbelievable (oh yeah, and no "fun" allowance)

We soon learned how wasteful we were with spending. It was PAINFUL at first watching our friends go out to the movies, or out to Dave and Busters, etc (we really did feel like we were "poor"). But then you kind of realize how stupid paying $50 for tickets and popcorn to see "Paul Blart Mall Cop" on the big screen really is. That's when it gets better. WAY better. I think I'm happier with the very few things I do treat myself to than my co workers who try to go and buy everything. (someone also mentioned buying things that will last and taking care of them? very good advice).

Anyhoo, enough soap box. Good luck man!

oh, tax return time? My wife and I usually treat ourselves to something "big". Maybe something around the $500 range? I usually buy a gun or a car part.

We have a very simple approach to this in my family.

Savings come out of the paycheck every month; Never see them and never think about them. Figure about 25% of take-home.

The rest, we don't really care about. Never done a personal budget nor balanced a checkbook in my life. Better things to do.

I will add that debt of any kind is not acceptable and certainly not for toys or vacations.

What is this savings you all speak of?

nepa03focus wrote: What is this savings you all speak of?

It's real, I've done it, but the quantities I had to experiment with were only useful for an academic exercise

That's called a proof-of-concept

Pretend you just bought a new car, or a house. The payments would be $xxx per month. Open a savings account, and put the car payment in the account. Forget you have the account.

If you can't pay cash, you can't afford it.

Gearheadotaku wrote: If you can't pay cash, you can't afford it.

QFT.

Pay off the credit card and put it away. That five hundred on it is costing you one hundred a year for nothing, just pissed away.

Many good suggestions above. I suggest Dave Ramsey's book(s) starting with the first one. It is written specifically for people like you. Available at Walmart. Pay cash for it.

Set up electronic payment with a credit union and put all that extra from your raise into a savings account and the normal amount you're used to into a checking account. Make sure the credit union you choose doesn't charge for said accounts.