10 answers
Elahsia
Student
Rock Hill, South Carolina
4
Questions
10 answers
Levi Bimba
Revenue Assurance Analyst
7
Answers
Broken Arrow, Oklahoma
Updated
Levi’s Answer
A wise saying I've heard is "Begin with the end in mind." In other words, start with the "why". Why do you want to save? Generally, it's good to save for the eventual rainy day. It's good to save to build wealth over the course of your life. The best way to save would be to start with a zero-based budget. I'm not a Dave Ramsey spokesperson but I have followed his program for years now and it is the BEST way to handle money. Download the FREE EveryDollar app and use that each month to keep track of every dollar you spend and every dollar you save.
If you and your parents would like some more information you can go to ramseysolutions.com or check out Dave Ramsey's YouTube channel.
Levi recommends the following next steps:
Ravi Kumar
Enterprise Architect
9
Answers
Taunton, Massachusetts
Updated
Ravi’s Answer
Saving money is an important part of personal finance, and there are several strategies that can help you achieve your savings goals. Some of these strategies include:
- Budgeting - create a budget and stick to it, so you can track your spending and make adjustments where necessary.
- Cutting expenses - look for ways to reduce your monthly expenses, such as negotiating bills, cutting unnecessary subscriptions, and cooking at home instead of eating out.
- Increasing income - consider taking on a side hustle or looking for ways to increase your income at your current job.
- Automating savings - set up automatic transfers from your checking account to your savings account each month, so you can consistently save without thinking about it.
- Avoiding debt - focus on paying off any existing debt, and avoid taking on new debt as much as possible.
- Planning for long-term goals - set financial goals for the future, such as saving for a down payment on a house or for retirement, and develop a plan to achieve those goals.
Remember, everyone's financial situation is different, so it's important to find a savings strategy that works for you and your unique circumstances.
- Budgeting - create a budget and stick to it, so you can track your spending and make adjustments where necessary.
- Cutting expenses - look for ways to reduce your monthly expenses, such as negotiating bills, cutting unnecessary subscriptions, and cooking at home instead of eating out.
- Increasing income - consider taking on a side hustle or looking for ways to increase your income at your current job.
- Automating savings - set up automatic transfers from your checking account to your savings account each month, so you can consistently save without thinking about it.
- Avoiding debt - focus on paying off any existing debt, and avoid taking on new debt as much as possible.
- Planning for long-term goals - set financial goals for the future, such as saving for a down payment on a house or for retirement, and develop a plan to achieve those goals.
Remember, everyone's financial situation is different, so it's important to find a savings strategy that works for you and your unique circumstances.
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer
657
Answers
Seattle, Washington
Updated
Paul’s Answer
I would consider using the 90 to 10 method.
Basically, this means that everytime you get paid, take out 10 percent of the total pay and place it in some kind of investment.
This can either be a money market at a bank, a mutual fund from an investment company, or even treasury issued savings bonds.
Basically, you will be living off the 90 percent that you get paid and putting aside 10 percent for savings. Many companies, employers and investment firms can assist with this strategy, if you require assistance.
Basically, this means that everytime you get paid, take out 10 percent of the total pay and place it in some kind of investment.
This can either be a money market at a bank, a mutual fund from an investment company, or even treasury issued savings bonds.
Basically, you will be living off the 90 percent that you get paid and putting aside 10 percent for savings. Many companies, employers and investment firms can assist with this strategy, if you require assistance.
Bailey Feathers
Technology Consulting
14
Answers
Newnan, Georgia
Updated
Bailey’s Answer
That's a great question. Personally, I have always found it easier said than done. However, I have found ways that have helped me save money. A budget planner can be your best friend when you don't know where to start. Write down all of the expenses, wants, & needs that you have so you know how much money is being spent each month as well as due dates. Doing this will help you keep track of when and how much you need. Setting up an automatic payments to expenses that allow it is another great way to make sure your expenses are being paid on time. After this is done, you can see how much you have left after paying for your expenses. Next, setting up a savings account with automatic transfers will help you start to save. So whatever money is left over after expenses can be put automatically transferred into a savings account. Eventually, you will see the savings account grow. Separating your wants & needs is also an important step. What you need should take priority over your wants!
Rebecca Tang
Banking
1510
Answers
Hong Kong
Updated
Rebecca’s Answer
Thank you for your question. This is a question on your financial management. And, many people have similar question.
Below are my suggestions :
1. Firstly, yo u many need to clear on what you need and what you want.
The items that are essential to support your living is what you need, i.e. food, groceries, school textbook, school fee, etc.
The items that are nice to have is what you want, e.g. jewelry, luxury car, etc.
2. You would need to come up with a list of items you really need and how much you spend on these items every month. Then, you deduct this expense from the pocket money given from your parent. You will know how much you can save every month.
3. Apart from saving, you can also consider to increase your income, e.g. doing part time job like a part time librarian in school, supermarket, etc. Having said that, you need to ensure the job is suitable for your age and safe. You better seek guidance from your parents as well. You can consider the job on weekends after you complete your homework and assignment.
Hope this helps! Good Luck!
Below are my suggestions :
1. Firstly, yo u many need to clear on what you need and what you want.
The items that are essential to support your living is what you need, i.e. food, groceries, school textbook, school fee, etc.
The items that are nice to have is what you want, e.g. jewelry, luxury car, etc.
2. You would need to come up with a list of items you really need and how much you spend on these items every month. Then, you deduct this expense from the pocket money given from your parent. You will know how much you can save every month.
3. Apart from saving, you can also consider to increase your income, e.g. doing part time job like a part time librarian in school, supermarket, etc. Having said that, you need to ensure the job is suitable for your age and safe. You better seek guidance from your parents as well. You can consider the job on weekends after you complete your homework and assignment.
Hope this helps! Good Luck!
Jaclyn Hackett
Wealth Planner
1
Answer
Manassas, Virginia
Updated
Jaclyn’s Answer
A great way to start is to set up automatic transfers from your paycheck or checking account to a savings account. Make it something doable, so you won't be tempted to remove it from savings - even $10/month would be better than nothing! Think of your savings account as money that you absolutely cannot touch.
Ravi Kumar
Enterprise Architect
9
Answers
Taunton, Massachusetts
Updated
Ravi’s Answer
Saving money is an important part of personal finance, and there are several strategies that can help you achieve your savings goals. Some of these strategies include:
1. Budgeting - create a budget and stick to it, so you can track your spending and make adjustments where necessary.
2. Cutting expenses - look for ways to reduce your monthly expenses, such as negotiating bills, cutting unnecessary subscriptions, and cooking at home instead of eating out.
3. Increasing income - consider taking on a side hustle or looking for ways to increase your income at your current job.
4. Automating savings - set up automatic transfers from your checking account to your savings account each month, so you can consistently save without thinking about it.
5. Avoiding debt - focus on paying off any existing debt, and avoid taking on new debt as much as possible.
6. Planning for long-term goals - set financial goals for the future, such as saving for a down payment on a house or for retirement, and develop a plan to achieve those goals.
Remember, everyone's financial situation is different, so it's important to find a savings strategy that works for you and your unique circumstances.
1. Budgeting - create a budget and stick to it, so you can track your spending and make adjustments where necessary.
2. Cutting expenses - look for ways to reduce your monthly expenses, such as negotiating bills, cutting unnecessary subscriptions, and cooking at home instead of eating out.
3. Increasing income - consider taking on a side hustle or looking for ways to increase your income at your current job.
4. Automating savings - set up automatic transfers from your checking account to your savings account each month, so you can consistently save without thinking about it.
5. Avoiding debt - focus on paying off any existing debt, and avoid taking on new debt as much as possible.
6. Planning for long-term goals - set financial goals for the future, such as saving for a down payment on a house or for retirement, and develop a plan to achieve those goals.
Remember, everyone's financial situation is different, so it's important to find a savings strategy that works for you and your unique circumstances.
Derek Kraus
Workforce Planning BP
30
Answers
Beaverton, Oregon
Updated
Derek’s Answer
Short but sweet, David Ramsey has a great book that helps guide you to save money and invest it in a way that can fit your lifestyle. Oddly this is a hard question to answer because it's based on what type of lifestyle you'd like.
Ka Ng
Product Manager
29
Answers
New York, New York
Updated
Ka’s Answer
Both Kayla and Levi give good advice. To make it easy when you start working, automate saving part of your paycheck after your necessities are accounted for. Removing the step of actively depositing money into an account will force you into this good habit. Saving your money when you are younger allows you to use time to compound the amount. Hope this helps.
Kayla Mys
Digital Asset Management Internship
4
Answers
Orlando, Florida
Updated
Kayla’s Answer
Make a list of wants and needs! A want is something that can wait, and a need takes priority. If you make all your essential purchases, you can look at your wants list! If you still want it after awhile, it is probably okay to get it! It's important that you don't just buy everything you like the second you see it. Sometimes feelings fade for a want. Give it time!