its similar to as shortly as my paycheck comes in, i run to the bank as well as deposition it… afterwards when it comes in i outlay half of it… i need a little tips upon how to save my money, prior to i finish up severely broke… any suggestions?
WHAT ARE SOME TIPS TO SAVING MONEY THAT YOU HAVE IN A BANK ACCOUNT?
Previous post: BONDS & RAISING CAPITAL?
Next post: HOW CAN WE GET MORE AND MORE ORDER FOR OUR FABRICATION BUSINESS?
{ 3 comments… read them below or add one }
I’ve got you covered. You need an account that you can’t touch, or else there’s penalty. Solution: online high yield CD. (I like your enthusiasm. lol) With a CD, your money is locked up for a certain period( from 1 month to 60 months) at a given interest rate. If you take the money out before maturity, you will be penalized 10%, not to mention ordinary income taxes. CDs are special savings accounts that pay you a fixed amount of money annually.
before you do what the guy ahead of me said about CDs. You need to budget your money. Figure out what you spend on the things you NEED not want, Keep money in your account for those rainy days, Learn control your money not your money control you.
You need to start from the fundations of budgeting in order to do so. So here is how to get your budget started…
First know how much you owe (other than student loan). What are the interest rates on those debts (credit card, auto loan, personal loan, computer loan, and etc.? and find out what is your credit score? More than 700? If so, there would be better way (quicker) for you to get out of debt along with good budgeting skills. If you do have more than 700 credit score than I will expand my answer.
After you gather all those info, make a list of monthly required payments from the highest interest rates as top priorty. Now list your rent, ultities, phone bills, internet and cable, and estimate your gasoline and grocery expenses (Be realistic and keep it minimum). Also don’t forget those auto insurance that is due every 6 months or a year. Break down the monthly cost and add it to the monthly living expenses total. Now add a little fun money (try 2% of your after tax income) to the MONTHLY total. I suggest only 2 percent, because you are trying to get out of debts, so don’t set the fun money too high. We need to focus on PAYING OFF DEBTS, and STOP CHARGING on credit cards.
So now take your after tax monthly income minus all debt payments (minimum required), minus monthly living expenses, and fun money. Now do you still have any more money left? If so, apply to the highest INTEREST RATE loan. Repeat the step untill you pay off the FIRST highest interest rate loan, then move on to the next highest interest rate loan.
If your amount comes out negative after the subtractions of all payments and living expenses. You have to review your spending habits and see what you spend the most. Dining out? Beers? Now is time to cut your expenses and try to bring this number up to a positive number, so you can pay off your debt.
As for me keeping myself spending money is, after the direct deposit of my pay check went into my accounts, I already subtract all the payments (plus the additional payment to the highest loan), living expenses, and the fun money. Because after that I already know those money are already committed. As the due dates of each payments and rents come up, I just write the checks (now I am pretty sure I have money to pay them as I already mentally subtracted them when I got pay). Well, I hope this little trick would help you too. You can even list the check numbers for each payments in the order of the due dates, it can also remind you that your payment is due. For example, if one of my credit card is due on the 8th, and the rent is due on the 15th, I would write down on the check registry that due amount for credit card and the date as 1st (need to mail it early before due date), and the rent can just be the 13th or the 14th (depends on how you pay your rent, if is a walk to the rental office, then the 14th should be fine). Always have a habit of paying a little earlier. Good Luck!!!