1 answer
Heaven
Student
City of Orange, New Jersey
1
Question
Asked
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How do I know how to become financially stable and when should I start saving up?
im very eager to see your responses im curious as to how to be financially stable and start young
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1 answer
Aileen Poron
Andrologist Lab Tech
10
Answers
Katy, Texas
Updated
Aileen’s Answer
Hi Heaven,
Ideally you should start saving now. It does not matter the age. The earlier you start the more you will have later on in a couple of years. Even if you do not have a lot you should still save. It will build discipline and that will help once you have more money. Make a monthly budget where 10% minimum is set aside for saving. If you’re able to put more it will only serve you better later on. When making a budget set a spending limit for yourself for going out, activities, food, rent, car, car insurance, and any miscellaneous expenses. It should be easy to track monthly and every month the amount saved should be the same or more. Depending on your bank you can auto set it to take the same amount out of your checking account every month so you don’t have to manually go in to do it if you don’t want to. Many jobs have retirement plans and those should also be taken advantage of especially if they match the rate you set. This is very important so your savings can go towards emergencies and big purchases such as a house, and the retirement is for later on. The earlier you start the better your retirement will be and can even help you retire earlier if you maximize the amount you put towards it. Another thing to think of is not buying a new car and getting a car that is certified pre-owned or used. Cars are really expensive now and they’re depreciating assets so if you get a new car it will depreciate so much that it will not be worth the value you paid for it when you drove it off the lot. The newer the car the more you will also pay for insurance. If you limit this as much as possible you can focus on getting a better apartment or saving more so you can get a house. Eventually investing your money in a Roth-IRA will be something to look into after your have good savings and retirement is at a good percent.
Best of luck!
Ideally you should start saving now. It does not matter the age. The earlier you start the more you will have later on in a couple of years. Even if you do not have a lot you should still save. It will build discipline and that will help once you have more money. Make a monthly budget where 10% minimum is set aside for saving. If you’re able to put more it will only serve you better later on. When making a budget set a spending limit for yourself for going out, activities, food, rent, car, car insurance, and any miscellaneous expenses. It should be easy to track monthly and every month the amount saved should be the same or more. Depending on your bank you can auto set it to take the same amount out of your checking account every month so you don’t have to manually go in to do it if you don’t want to. Many jobs have retirement plans and those should also be taken advantage of especially if they match the rate you set. This is very important so your savings can go towards emergencies and big purchases such as a house, and the retirement is for later on. The earlier you start the better your retirement will be and can even help you retire earlier if you maximize the amount you put towards it. Another thing to think of is not buying a new car and getting a car that is certified pre-owned or used. Cars are really expensive now and they’re depreciating assets so if you get a new car it will depreciate so much that it will not be worth the value you paid for it when you drove it off the lot. The newer the car the more you will also pay for insurance. If you limit this as much as possible you can focus on getting a better apartment or saving more so you can get a house. Eventually investing your money in a Roth-IRA will be something to look into after your have good savings and retirement is at a good percent.
Best of luck!