Any other churners in here??? Started doing this seriously as of last year and I have to say its addicting. I took my emergency fund money that I keep in a savings or checking account and move that around from bank account to get a new account or some direct deposit bonus, and its netted me far more than I would have just leaving it in my bank account. I will be going on vacation here in a few weekends solely paid for by this hobby (read addiction). Definitely happy with my returns so far, and I have only just scratched the surface it seems.
There are various ways by which one can save money. Cut all your extra expenditure and buy those things which are necessary. For a good saving follow these points: 1) List your expenses. 2) Make a budget plan. 3) Decide your priorities. 4) You can make your savings automatic. Following such steps may help your savings grow.
Excellent points. I would also develop an Assets/Liabilities spreadsheet and track your net worth quarterly. All the efforts to save begin to show up there and it only encourages additional savings/cost-cutting measures AND keeping out of debt. I think #3 is hardest for most folks and arguably the most important in terms of guiding consumer (spending) behavior; there is so much we take for granted as necessities that are not. I dropped out of the workforce at age 50 (I'm 53 now). When asked how I did it, I describe owning the same Toyota for 20+ years, never having cable TV, getting reading material (books, magazines) and movies from the library, and so on. (Interesting side note...I belong to 4 different library systems in 4 separate states and they all stream movies now! so no more DVDs.) Priorities require thinking about choices we didn't even know we have because we are so used to having our life line mapped along the paths lit up by the familial and societal expectations all around us. It's not easy to swim back downstream when all the fish around you are trying to figure out how to leap over the next set of falls.
So my method of saving money is by investing. It allows me to forget about the money but actually, I am saving it. It also acts like an emergency funds.
I agree with #3 being the hardest. At least, that's the case for me. And thanks for that idea about making an assets/liabilities spreadsheet. I feel like it could take a lot of work but it might be worth the effort!
A little effort (but not much!) to set up something basic, but then easy to maintain after that. How many bank accounts do you have? Equity accounts? IRAs and 401ks? List those down the first column on the left of the spreadsheet and in the second column type in today's value. Add a row below them for subtotals. Shade this section light green. Note: Do not count cars, houses, property, or art as an "asset". Even if they generate income, that income will add to the value of one of your accounts listed above. How many loans (including car and mortgage and student), and balance-carrying credit card accounts do you have? List those further down the first column (after the assets) and enter today's value in column two. Add a row below them for subtotals. Shade these light red. Now add a row at the bottom subtracting the liabilities from the assets. This is the magic number you want to grow every quarter. Column three will be the values for these line items as of Sept 30. Column four will be for Dec 31. And so on. So you only have to update it 4 times per year. Once you start getting some data, you can graph your progress. You will (relatively) quickly see how efforts to save $ (and pay off loans) translate into changes of your financial position.
save 10% of your salary every month and you'll be surprised how much money you have at the end of the year
Gads this thread is a bit dated. Simple things? Let's see... No more 8$ coffee on the way to work No more eating out lunch every work day. Trim off Netflix and quit buying the latest Apple Everytime it hits the stores. I could go on and on. But seriously, it's easy if you really want to save.
Stop recreational shopping. Once I stopped buying fashion items. I had money. I don't have the latest name brand jeans and shoes. I quit buying toys and gadgets. The biggest saver was not buying new cars. Just keep driving and maintaining the car I already have. Chicks don't hook up with a guy wearing old clothes, driving an old car, and doesn't have the latest iPhone. Now I don't get girls like when I was young, so maybe it's because I am old.
There are a lot of ways to save money, but you need to be disciplined to achieve your goals: Make a budget track your spending Pay off your credit card Open a savings account Control your impulses Plan your meals
Pay yourself first on predetermined value "X". Establish a method to retrieve funds from credit cards when arbitrage situations arise. The end. That's the answer.
Record your expenses. The first step to start saving money is to figure out how much you spend. And then find ways you can cut your spending.
I still live like a student for the most part. I've never been much of a fan of having lots of 'stuff' cluttering up my life, so the latest fashion, cars, gadgets, etc doesn't interest me. I'm still single and work from home right now, so there's no one I need to impress anyway (giving up dating saved me a bomb!). Most of my hobbies are either free or make me additional income, which helps. Other than that, I guess avoiding debt. I'm no longer religious, but was raised in a pretty strict religious home and one benefit to that was having certain financial values drummed into me (avoid debt, invest, don't hoard cash, give a % to charity, plan long term, etc). I no longer follow them for religious reasons, but practical ones. So I think having general financial discipline definitely helps. A lot of people seem to be very disorganised with their spending.
