3 answers
Hannah
Student
Corinth, Mississippi
1
Question
Asked
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How do I save money ?
How do I save in a constant way without taking it out on impulse. I need to save for college but I’m bad at taking money out
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3 answers
Ken Hoffman
Engineering
3
Answers
Nanuet, New York
Updated
Ken’s Answer
The best way it automation. You mention you are a student saving for college, unclear if you are a minor if you can take out a 529 plan. If you can, do it and start taking out an amount you can afford say monthly. Then contribute when you can as you get good "hits" of money. Think of this as if you were to start exercising...it hurts in the beginning but as you develop this savings muscle, you will get excited about it and be on a mission!
See what you can do and if the 529 plan is not a option, the a high interest savings account is a start. The point is to develop that savings muscle.
See what you can do and if the 529 plan is not a option, the a high interest savings account is a start. The point is to develop that savings muscle.
Tammy Laframboise
Present pension and financial planning information to members of a pension
41
Answers
Toronto, Ontario, Canada
Updated
Tammy’s Answer
Saving habits can be learned.
1. Goals - Saving is easier if you have a reason to save - a goal. In your case, college tuition is your savings goal. In order for "college tuition" to be an effective goal you need to flesh out the details. How much do you need to save? When do you need to have this amount saved by? Break up the total needed into smaller chunks of time. For example, if you need $3,600 in 3 years, that means that you must save $1,200 in each of the next 3 years or $100 every month for the next 3 years. To keep yourself motivated and your goal front and centre in your head, write it down, keep a picture of the college in your wallet so that you see it every time you reach for money to buy something else, make a thermometer poster with your goal and increments that you colour in as you reach each mini-goal, tell someone who will ask you about your goal and help to keep you accountable.
2. Plan your spending - Write down the money that you receive and all the money that you spend. By doing this exercise before you receive or spend any money you are planning on how you will use this resource of money to achieve your goal of a college education. This is also known as a Budget but most people hate the B work. Having a Spending Plan puts you in the the driver's seat, deciding on how you will use the scarce resource, money, to get what you want.
3. Keep track of actual spending - Often the simple act of writing down every single penny you spend is enough to curb impulsive spending. If impulsive spending continues, then you must become a detective and determine where you spend money, how you spend money and, most importantly, why you spend money. Only then can you change your current spending habits to put saving for goals as a priority.
Be kind to yourself. Learning good spending habits is a process that takes time and practice.
Good luck!
1. Goals - Saving is easier if you have a reason to save - a goal. In your case, college tuition is your savings goal. In order for "college tuition" to be an effective goal you need to flesh out the details. How much do you need to save? When do you need to have this amount saved by? Break up the total needed into smaller chunks of time. For example, if you need $3,600 in 3 years, that means that you must save $1,200 in each of the next 3 years or $100 every month for the next 3 years. To keep yourself motivated and your goal front and centre in your head, write it down, keep a picture of the college in your wallet so that you see it every time you reach for money to buy something else, make a thermometer poster with your goal and increments that you colour in as you reach each mini-goal, tell someone who will ask you about your goal and help to keep you accountable.
2. Plan your spending - Write down the money that you receive and all the money that you spend. By doing this exercise before you receive or spend any money you are planning on how you will use this resource of money to achieve your goal of a college education. This is also known as a Budget but most people hate the B work. Having a Spending Plan puts you in the the driver's seat, deciding on how you will use the scarce resource, money, to get what you want.
3. Keep track of actual spending - Often the simple act of writing down every single penny you spend is enough to curb impulsive spending. If impulsive spending continues, then you must become a detective and determine where you spend money, how you spend money and, most importantly, why you spend money. Only then can you change your current spending habits to put saving for goals as a priority.
Be kind to yourself. Learning good spending habits is a process that takes time and practice.
Good luck!
Vamshee Gunturu
Principal Engineer
187
Answers
Chandler, Arizona
Updated
Vamshee’s Answer
Fantastic question! Saving is indeed like earning, and it plays a crucial role in reaching your financial goals. So, let's take a positive and empowering approach to managing your finances:
To make saving a breeze, start by setting up a dedicated savings account and begin transferring a specific amount from your paychecks or gifts on a regular basis. By doing this, you'll establish a consistent saving habit. Define your objectives, such as how much money you need for college and how much allowance you require each month.
Be intentional in choosing an account for your college savings. Having a solid goal for saving money in college is excellent, but why not level up and ensure your money is working its hardest for you by depositing it into specific accounts? Here are some common ones to consider:
- Checking Account: Best for daily expenses, these typically provide little or no interest but offer quick access to your money. Ideal for funds you plan to spend in the near future.
- Savings Account: Typically earns more interest than checking accounts but may be slightly less accessible. A great option for saving towards short-term goals or building an emergency fund within the next 3 years.
- 529 Account: A tax-advantaged savings plan designed for education purposes, it grows tax-deferred and can be withdrawn tax-free for qualified education expenses. This is a good choice for funding future education or repaying student loans.
Aside from working part-time or during the summer, saving for college is essential. Maintaining a high GPA, and performing well on your PSAT and SAT in high school can help secure admission with tuition waivers, on-campus jobs, and more.
Don't forget to apply for FAFSA to receive low-interest student loans. Make wise spending choices, prepare your meals, save on housing, and apply for scholarships and grants to further reduce college costs.
Keep up the great work and remember that every little bit saved brings you one step closer to achieving your financial goals!
To make saving a breeze, start by setting up a dedicated savings account and begin transferring a specific amount from your paychecks or gifts on a regular basis. By doing this, you'll establish a consistent saving habit. Define your objectives, such as how much money you need for college and how much allowance you require each month.
Be intentional in choosing an account for your college savings. Having a solid goal for saving money in college is excellent, but why not level up and ensure your money is working its hardest for you by depositing it into specific accounts? Here are some common ones to consider:
- Checking Account: Best for daily expenses, these typically provide little or no interest but offer quick access to your money. Ideal for funds you plan to spend in the near future.
- Savings Account: Typically earns more interest than checking accounts but may be slightly less accessible. A great option for saving towards short-term goals or building an emergency fund within the next 3 years.
- 529 Account: A tax-advantaged savings plan designed for education purposes, it grows tax-deferred and can be withdrawn tax-free for qualified education expenses. This is a good choice for funding future education or repaying student loans.
Aside from working part-time or during the summer, saving for college is essential. Maintaining a high GPA, and performing well on your PSAT and SAT in high school can help secure admission with tuition waivers, on-campus jobs, and more.
Don't forget to apply for FAFSA to receive low-interest student loans. Make wise spending choices, prepare your meals, save on housing, and apply for scholarships and grants to further reduce college costs.
Keep up the great work and remember that every little bit saved brings you one step closer to achieving your financial goals!