need help saving money, any advice you can give would be helpful?
specifics 20 years old. make 18 grand a year so far only have about 3 to show for it
websites advice how much i should save. thank you!
- Anonymous1 decade agoFavorite Answer
The general rule is to save as much as you can, as soon as you can, as often as you can and don't touch your savings so that you can maximise the impact of compound interest over time.
If your country or employer offers a superannuation scheme whereby they match your contributions - make sure you join straight away. You may not be able to access the money until you retire, but imagine how fast your savings will grow if for every dollar you put in, the state or your employer puts in 50c - $1.
If you're only option is to DIY (do-it-yourself) then my advice is to start small.
Set up an automatic payment for $100 a month - this is the "out of sight, out of mind" approach to saving.
$100 a month saved over 45 yrs will add up to $54,000 (i.e $100 * 12mths * 45yrs).
What's more, if you don't make any withdrawals over this period your savings would reach $122,480 (assuming monthly compounding at 3% interest after-tax).
One final note - over time, if you work hard at your job, you would expect your wage to increase as your experience and skill set grows and new opportunities open up for you.
It is important that when you receive pay rises, bonuses, monetary gifts etc that you don't spend all of your new found wealth; make sure your savings are taken care of first.
- 1 decade ago
How much you should save is dependent on the lifestyle you want to live. Obviously the more you spend on things to live, the less you have to save. Similarly if you only save then some would say you are not living. One approach is to put away something with every paycheck as consistency will eventually build up your savings. Have something automatically put into an account for you by your payor and then you will never miss having the opportunity to spend it.Source(s): experience
- ?Lv 44 years ago
properly i provides you you some advice, yet you will possibly no longer like it... a million. you are able to desire to make an easily funds earlier doing something, so as which you will discover precisely the place your funds is going. there are various unfastened Excel funds spreadsheets on the internet -- only google them. 2. do away with your television and decrease the cable/satellite tv for pc bill out of your costs. 3. re-evaluate your foodstuff purchases. As a single man or woman i will get via on $a hundred and fifty-2 hundred funds a month for foodstuff and nevertheless eat incredibly reliable. in case you're spending lots extra effective than that then you rather would desire to heavily re-evaluate the failings you purchase. 4. Ditch the flamboyant cellular telephone equipment if achievable and get the main straight forward equipment you will discover. remember: smart telephones with internet and all the bells and whistles at the instant are not a choose, they seem to be a luxurious. 5. in the adventure that your hire is taking a extensive bite out of your income, then evaluate getting a smaller, extra low fee house. A single man or woman fairly does not choose very lots in terms of area -- I lived in an 8'x8' college dorm without kitchen and one small bathing room related for years and did only superb. 6. in case you're fairly extreme approximately saving, then you rather will would desire to chop back your entertainment funds. which skill ingesting out much less, identifying to purchase much less 'toys' and convenience products, much less entertainment identifying to purchase journeys and much less new outfits. I in ordinary terms make $13 an hour myself, yet i'm proud to declare that i will positioned over $750 a month into mark downs after costs and taxes, and nevertheless stay very comfortably. that's fairly achievable, notwithstanding it takes slightly dedication and self-discipline.
- 1 decade ago
Your asking how to save money? Um...I hate to say this but don't buy the most expensive type of product there's always a generic form.
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- 1 decade ago
At least save 10% of your income or if you can make it 20% then do it. Please do not touch your savings unless it is necessary or in emergency situation. In this way you can save and earn interest if you deposit it in the bank.