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I never have savings because I always spend it... advice please?
I never have savings because I always spend it... advice please?
Every time I have even $500 in savings I spend it. I spend it on what seems to be important, like upgrades for the house. And I am sure I am increasing the value, but I just have a really hard time leaving savings alone. That is why I only have $900 in savings. I finally paid off our credit cards (for the 3 time). But I usually spend my savings and then become desperate for dental work or car repairs or christmas or whatever and then my credit cards get pulled out again. How can I teach myself to stop spending? I really really can't think of anything else but what I can buy with the savings I have (from a tax refund). It's not like I saved it up!
Answers:
Michael W: Put a set amount each payday in an account you won't or can't touch.
2008-04-09 06:54:58
2008-04-09 06:54:58
angie h: i think you should just keep on saveing and if you want to touch it just tell your self no thats it is for some thing inportin like its for life or dealf even thouh it's not but just think that so you would want to spend it if you think it's so inportin to you
2008-04-09 06:56:31
2008-04-09 06:56:31
chanray: Stop spending on such frivolous stuff. I'm sure $500 can't do much for a house in spurts. Maybe setup an online account like ING/Emigrant Direct/HSBC and have weekly/monthly transfers into that account from your existing checking/savings account. I did that and in a year, I had almost $10K saved up and was earning 4% interest. That was a couple of years ago...the interest rate is a little lower now. But still, it's better than any local bank's interest rate. Or you can open up a Roth IRA and put your money to work for you. You can put up to $4K for 2007 and up to $5K for 2008. Your money won't be tied up forever in a Roth IRA. In case of emergencies, you can always take out your initial contribution but not the gains until you reach retirement age. If your money is in an IRA, you'll probably be less inclined to touch it if it's making more money for you. The way you're living, you'll never get ahead and will always be working until the day you die or marry a rich guy. =)
2008-04-09 07:00:23
2008-04-09 07:00:23
Mark S: A friend of mine used to do this, so what i did was took the money she wanted to save, and i would put it into a small box with a note attached reminding her that the money should only be used when absolutely needed. Whenever she saw the note it reminded her not to touch it, and it seemed to work pretty well.
2008-04-09 07:01:04
2008-04-09 07:01:04
Chosen Answer
Michael I: Set up another savings account at ING or another bank. Have money from your paycheck directly deposited into the account. Throw away the ATM/Check Card you may receive for the account. Set up to have electronic emails sent instead of paper statements.
Be sure to select a Bank or organization that is geographically far away, so that going and making a withdrawal will be impossible. You can deposit money to an account like ING directly.
Another option is to purchase CD's (certificates of deposit).
Once you buy, you will get penalized if you cash it out prior to it's maturity date. You can buy CD's for as little as $500.00.
You can buy them for 6 months up to 5 years.
I would recommend buying them in 12 month intervals.
You can also buy US Savings bonds and I would recommend buying I series bonds, they are earning interest from day one on the full face value.
You can also invest in Stocks, because once you tie your money up there, it's not "instantly" available to you like it would if it were in a bank account. If you had $500.00 worth of Microsoft or Disney stock ("safe bet" stocks), than in order to get that money you have to put in a sell request and then you have to wait for the transaction to "settle" and it can be a week before you get your money. THEN once you do you have to file the transaction with the government on your taxes.
This is for capital gains tax, although the earnings can be worth it, if you knew you had to file a capital gains everytime you wanted to get a few hundred bucks out of your "savings" you probably wouldn't do it....right?
2008-04-09 07:02:15
Michael I: Set up another savings account at ING or another bank. Have money from your paycheck directly deposited into the account. Throw away the ATM/Check Card you may receive for the account. Set up to have electronic emails sent instead of paper statements.
Be sure to select a Bank or organization that is geographically far away, so that going and making a withdrawal will be impossible. You can deposit money to an account like ING directly.
Another option is to purchase CD's (certificates of deposit).
Once you buy, you will get penalized if you cash it out prior to it's maturity date. You can buy CD's for as little as $500.00.
You can buy them for 6 months up to 5 years.
I would recommend buying them in 12 month intervals.
You can also buy US Savings bonds and I would recommend buying I series bonds, they are earning interest from day one on the full face value.
You can also invest in Stocks, because once you tie your money up there, it's not "instantly" available to you like it would if it were in a bank account. If you had $500.00 worth of Microsoft or Disney stock ("safe bet" stocks), than in order to get that money you have to put in a sell request and then you have to wait for the transaction to "settle" and it can be a week before you get your money. THEN once you do you have to file the transaction with the government on your taxes.
This is for capital gains tax, although the earnings can be worth it, if you knew you had to file a capital gains everytime you wanted to get a few hundred bucks out of your "savings" you probably wouldn't do it....right?
2008-04-09 07:02:15
chatsplas@sbcglobal.net: PUT it in to an IRA for your future. Join the 401k at work. NEVER, never take any money from your 401k or IRA until you're 59 1/2, because you'll lose at least 20% of it.
It's great that you've paid off your credit cards, even if 3 times. Savings are for rainy days, and car repairs or dental work are legitimate use of credit cards or savings, short term. That's not a failure on your part. Stuff happens, you took care of it and are financially stable.
Maybe with your tax refund and the rebate coming up, you should say 1/3 for retirement, 1/3 for savings, 1/3 for purchases (whatever: the house, car, vacation, trip).
Maybe when your savings reach $500 or $1000, you should buy a CD with it, 6, 9 or 12 month certificate of deposit? Then you can't get that money until certificate time is up--without penalty, that is.
2008-04-09 07:08:44
It's great that you've paid off your credit cards, even if 3 times. Savings are for rainy days, and car repairs or dental work are legitimate use of credit cards or savings, short term. That's not a failure on your part. Stuff happens, you took care of it and are financially stable.
Maybe with your tax refund and the rebate coming up, you should say 1/3 for retirement, 1/3 for savings, 1/3 for purchases (whatever: the house, car, vacation, trip).
Maybe when your savings reach $500 or $1000, you should buy a CD with it, 6, 9 or 12 month certificate of deposit? Then you can't get that money until certificate time is up--without penalty, that is.
2008-04-09 07:08:44
observer: that's hard I always round up on my check book nearest dollar or five dollars depending on the month you will always spend money most people work 5 days a week and spend money 7 days a week. you will just have to say no do more price shopping. burn yourself out on that. some people cant even save up 50.00 let alone 500.00 good job on the credit cards. now that you are seeking help you already know you have a problem. buy some bonds if you need the money you can still get the money but it will be harder. and it would take a longer time. try it buy a couple of 25.00 bonds see what happens you might find out that it works for you.it could take up to 6 months to get your money back. and if you leave it there untill term you doubble your money
2008-04-09 07:09:42
2008-04-09 07:09:42
VideoCreditScore: the easiest way is a forced savings plan. If you have direct deposit, you can have a small part deposited into a separate savings account. Have this be an account with no atm, that makes it hard for you to access the funds. Force yourself to deposit all windfalls like tax refunds into these accounts.
Are you maxed on your 401K, that's the best savings plan as your money grows tax deferred.
2008-04-09 07:39:31
Are you maxed on your 401K, that's the best savings plan as your money grows tax deferred.
2008-04-09 07:39:31
Alex B: Well... you should put money in a separate savings account that is not linked to your other accounts. Make sure you dont have an ATM card linked to it either, should you need to withdraw money, it will be harder and more time consuming as you have to go to a teller at the bank. Also, have one of your paychecks automatically deposited in there from your work.
2008-04-09 08:04:32
2008-04-09 08:04:32