How do you save?

Brian HCM#1 · Dec 28, 2004

How much do you make and how much do you spend for necessities like rent, phone, car incurance etc? Break that down, give your self an allowance for gas and food and bank the rest. Don't go to movies, buy CD-DVDs etc take your chick out to dinner. Does she ever treat you to meals or you always pay?

binary visions · Dec 28, 2004

I'm bad at saving too.

My company has an auto-deposit option for our paycheck. I simply set it up so that 20% of my paycheck goes into my savings account before I even see it. If I don't see it, I don't touch it. After that, it's simply a matter of discipline to not touch the savings account.

Get rid of the credit cards. If you can't handle them responsibly, you should not have them at all...

Lexx D · Dec 28, 2004

binary visions said:
I'm bad at saving too.

My company has an auto-deposit option for our paycheck. I simply set it up so that 20% of my paycheck goes into my savings account before I even see it. If I don't see it, I don't touch it. After that, it's simply a matter of discipline to not touch the savings account.

I like that idea.........I'm gonna go talk to accounting.

riderx · Dec 28, 2004

First, don't buy anything unless you can pay cash.

Then decide how much you really want something before you buy it. Do you need it? Can you live without it? Is there a cheaper substitute?

peter6061 · Dec 28, 2004

Set up a savings account and put in a previously determined amount of money (based on what was already said) each pay period.

DO NOT TOUCH THIS ACCOUNT FOR ANYTHING BUT A REAL EMERGENCY!

Currently I have many accounts set up for different things. The money I make from my part time job actually goes into a separate account called my 'bike' account through direct deposit. I can spend that money on anything I want. I don't touch any of the other accounts for anything frivilous. After a few months, there is a substantial amount of money in that account and I can go ahead and buy a bike or something and not feel any guilt or pressure from my wife.

Good luck. I've come a long way since the collection agents back in the 90s knocked on my doors.

SkaredShtles · Dec 28, 2004

And let's not forget the big one:

Quit buying a double-skinny-almond-macchiato every morning. It's known as the "Starbucks tax" and it's significant.........

Eating out is another *huge* no-no if you're trying to save money.

-S.S.-

I Are Baboon · Dec 28, 2004

Save???

SkaredShtles · Dec 28, 2004

stosh said:
<snip>
So would you say that we need to figure out exactly how much we pay a month and go from there?

You need to figure out your *fixed* expenses. These are the ones that no matter what you do, they won't go away. That leaves discretionary spending, which can either be saved, or, well...... spent.

Oh - another big hinderance to saving money is car payments.

-S.S.-

SkaredShtles · Dec 28, 2004

I Are Baboon said:
Save???

Yeah - it's how people take off when they want to for 4 month trips in Europe......... it's really worth the effort.

-S.S.-

TN · Dec 28, 2004

binary visions said:
I'm bad at saving too.

My company has an auto-deposit option for our paycheck. I simply set it up so that 20% of my paycheck goes into my savings account before I even see it. If I don't see it, I don't touch it. After that, it's simply a matter of discipline to not touch the savings account.

Get rid of the credit cards. If you can't handle them responsibly, you should not have them at all...

we also like to stash our extra cash away for certain stuff like vacations.

N8 v2.0 · Dec 28, 2004

There really isn't any easy way to save as far as I know.

It always comes down to discipline and a willingness to do without the "goodies of life" for a while until you are at a point where you can start spending more.

I have a minimum limit on the amount of money in my primary account and if it dips below that threshold, I stop buying unnecessary stuff until it recovers. Personally, I am not comfortable with my savings unless I know that I can pay my essential bills for 6-9 months if something was to happen to my job.

I always pay my credit card off each and every month (usually it is around $1100/month for gas, food, dining, entertainment, goodies). By paying your credit card off every month, you will know if you are spending more than you wanted to and take measures to correct it.

biggins · Dec 28, 2004

monthly income-fixed expenses=residual.

figure out how much of that residual you can put aside.

do not forget to add in an average amount for things such as oil changes, clothes, food etc.

or you could break up with your girl cause they are expensive.

your residual should be where things like going out to dinner, entertainment, bike parts and things of that nature should come from since they technically are not necessities.

N8 v2.0 · Dec 28, 2004

stosh said:
I think eating out is a big one for us.....

I dont' buy coffee, I only buy a 1$ bagel in the morning.

Don't be surprised to discover that since there is only 2 of you that you won't save that much on dining out vs. buying groceries.

binary visions · Dec 28, 2004

All the advice that's been given is good.

The fixed expenses part is important - I kept this unbelievably complex spreadsheet for about a year with every single expense on it, detailed down to the penny, with lists of what was an "important" optional expense, or a frivolous one, how much they were, etc. That's everything, down to my $1 bagel in the morning and $0.85 can of soda at lunch. The spreadsheet really shocked me when I figured out how much money I was spending at Wal-Mart, or on pizza, or what-have-you. Since then I've been much better and while I'm not rich, or even where I'd like to be in terms of savings, at least I don't sweat my rent at the end of the month.

This desk you're talking about buying is a perfect example. Be honest, do you really need that desk? Or are you just sick of looking at the old one, and your girlfriend would like some new furniture, and you'd like a little more workspace... If you took that $300 and put it into the savings account, would your life stop because you didn't have a new worksurface? What about that MP3 player that'd be a lot of fun to have? What if you bought it in a year once you've saved a little?

Just think about those niceties that you really, really want but don't really need.

N8 v2.0 · Dec 28, 2004

stosh said:
I like that but I would like to get rid of my cards all together.

While that is an admirable goal, it just isn't practical these days. Keep the card, just use it to pay for essentials and not to purchase a life-style that you can't really afford anyway.

TN · Dec 28, 2004

stosh said:
I think eating out is a big one for us.....

I dont' buy coffee, I only buy a 1$ bagel in the morning.

thats antoher good suggestion....quit eating out as much...well, quit eating out IN RESTARAUNTS. :evil:

We limit ourselves to one restaraunt visit a week, two if we do something really cheap like take-out. Buying groceries is WAY cheaper & cooking is fun, especially with your significant other. (& you can eat out for desert! :evil: )

N8 v2.0 · Dec 28, 2004

stosh said:
What does that mean?

If you mean that we won't save much by buying groceries I would tend to agree with you.

If I was to make a meal for the 2 of us the cost for the food would run pretty close but the tip might throw it over.

It means what you said. Cooking at home for two is gonna cost you close to what dining out for two will cost you (generally).

TN · Dec 28, 2004

stosh said:
What does that mean?

If you mean that we won't save much by buying groceries I would tend to agree with you.

If I was to make a meal for the 2 of us the cost for the food would run pretty close but the tip might throw it over.

not ture. if you go the grocery store regularly, you will end up filling your cabinets with most essential ingriedents. If you go out & buy a bag, box, whatever, of all the ingredients you need for a meal, hell yeah, it will cost as much if not more. Plus you will eat better, feel better & have more control of you diet.

Plus leftovers kick ass. think of cooking a meal for two as, dinner for two & lunch for tomorrow for two.

..& dont forget, you can still eat out! :evil:

Crashby · Dec 28, 2004

Lets not forget about the overall net worth appreciation... (Really more important than a $$ amount in your bank account or under your mattress)

1st off - get out of your apt., and get a house... I forgot where in NY you live, but with a couple people, you should be able to get into something fairly easily. Rates are still historically low, and if you stick to a 15 year (or less) mortgage, your principle additions will really start to add up over the next few years.

Huge rule of thumb... own as little as possible in the category of depreciating items (buy a used car vs. new 325i) and own as much as possible of stable or appreciating assets (precious metals, real estate, etc.).

Really good idea... every month, calculate your net worth... basically assets minus liabilities... (Make sure assets are anything you can turn into cash within a couple weeks) my basic net worth outline is below:

Net Worth
Assets
Liabilities
Overall Total

Assets
Chase Checking
Chase Savings
Total Cash and Bank Accounts
My House
1999 Honda Accord EX
Silver Bullion
Bikes
Job 401K
Total Assets

Liabilities
Credit Card
Mortgage
Total Liabilities

This will keep you ever aware of "how you are doin'".

I Are Baboon · Dec 28, 2004

N8 said:
It means what you said. Cooking at home for two is gonna cost you close to what dining out for two will cost you (generally).

What the hell kind of grocery store are you shopping at? :confused:

A hearty meal for two will cost you $10 at a grocery store on a bad day.

Westy · Dec 28, 2004

I just donate sperm when I need extra cash.

binary visions · Dec 28, 2004

N8 said:
While that is an admirable goal, it just isn't practical these days. Keep the card, just use it to pay for essentials and not to purchase a life-style that you can't really afford anyway.

That's just plain wrong.

Plenty of people live without credit cards. Credit cards make it far too easy to purchase things that you can't afford - if you can't pay cash, don't buy it.

As far as groceries vs. eating out goes, you can buy groceries very cheaply, you just need to shop smart. Sure, if you go to the grocery store and buy your dinner for that night, vs. eating out, you'll spend the same. If you go once a week and buy big packages of what's on sale, you'll cut your food bill in half, at least.

See that sale on spaghetti where it's 4/$1.00? The sauce was on sale last week. If you had bought five jars of sauce when it was on sale, and ten packages of spaghetti this week, you've got meals for a long time - not that you have to eat it every night, but both of those items keep well.

Anyone who claims eating out is the same as buying groceries, doesn't shop smart. That inexpensive $25-30 meal at a resturant will buy you hamburger, buns, ketchup, lettuce, frozen corn, chips and soda, and everything except the hamburger will be there for more than that one meal. A stir-fry at Applebees is $11, that same $11 will buy you the veggies and meat for both of you to eat stir-fry.

Slugman · Dec 28, 2004

stosh said:
If you mean that we won't save much by buying groceries I would tend to agree with you.

If I was to make a meal for the 2 of us the cost for the food would run pretty close but the tip might throw it over.

We do 2 things we do to keep our 'dining out' experience cheaper:
1. Get 2 apps (each pick one) and split an entre (lots of time too much food anyway)
2. Limit the alcoholic drinks (HUGE savings).

As for Groceries - we actually clip coupons. We'll do it while watching TV or just grab a bottle of wine and some snacks and clip coupons while talking. You'd be really surprised by how much we save -average $40 per week. What can you do with an extra $120 per month....

riderx · Dec 28, 2004

N8 said:
It means what you said. Cooking at home for two is gonna cost you close to what dining out for two will cost you (generally).

Maybe if you eat at McDonalds...

SkaredShtles · Dec 28, 2004

stosh said:
I've debated getting rid of my Xterra for a commuter car.... I love my xterra though.

Just keep in mind that it's preventing you from saving <insert car payment amount> dollars per month.........

-S.S.-

SkaredShtles · Dec 28, 2004

N8 said:
Don't be surprised to discover that since there is only 2 of you that you won't save that much on dining out vs. buying groceries.

Bwaaaahahahahhahaha! Bull$hit.

-S.S.-

N8 v2.0 · Dec 28, 2004

Whatever... just don't be counting on that massive amount of dollars saved from dining out to build your savings account up anytime soon.

Crashby · Dec 28, 2004

Another thing... unless it really makes you unhappy - live below your means... almost everyone increases their lifestyle as they amass more net worth, and make more money as they get older... thus, the same money 'problems' follow. When you were 18, it was rough to pay off a $500 beater mobile... no different to pay off a $40,000 Lexus when you are older with a higher paying job (just this time, there is substantially faster depreciation on the new Lex).

Side story: A family member of mine has owned over 50 new cars. It has cost him more than $200,000 in depreciation.

At the end of the day, driving a nice used Camry or Accord is really not that much different than driving that new high end luxury car... watching a 32" standard TV is really not that much different than a 42" LCD flat panel... same with shoes, clothes, furniture, you name it. Stay comfortable and happy, but just dont spend incrementally more just because you are pulling in more bank at the ole grind.

Oh yea... and dont drink (too much), smoke, or play Lotto... simply avoid the habit forming costs that simply dont add anything to your worth or your sense of well being for that matter...

SkaredShtles · Dec 28, 2004

stosh said:
Yeah but I need my xterra for hauling my bikes and camping gear.

Which would be accomplished just as well by a 10-year old Subaru wagon with a rocket-box. And you'd get better gas mileage.

Hell - you could haul all your camping gear in a 10-year old Civic with a rocket box.........

I used to drive a 1980 Toyota Tercel hatchback and could get all my worldly belongings in it. Bike, skis, camping/backpacking gear, etc.

-S.S.-

Rip · Dec 28, 2004

Sell your body to science, simple enough.

How do you save?

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