Anyone else like this out there? I love electronics. I love eating out. I make a good amount of money and don't "stuggle" but I just can't find any money to save. I had some savings then I would go on vacation or buy something and have to drain it out to pay the bills. I know there are things I could cut down on to save, but I don't like sacrificing my lifestyle to save money, when I'm not struggling. Anyone else fall into this category. I'm just wondering what you guys do to save when you like to spend? Any ideas would be good. Thanks.

 

But you are struggling, BIG TIME if you have no savings. What happens if you lose your job?

I know someone that has two direct deposits taken directly from their employer when payday rolls around.

1 to main checking/savings to pay bills and live
1 to a separate account which is more difficult to withdrawal money from, like and ING account.

Bottom line is you need discipline. There's nothing out there that is going to prevent you from draining your savings each month but YOU.

Do you have any retirement accounts set up, 401K, IRA?

 

Direct depositing cash into accounts that are pain to withdraw from helps me out.

 

^

Enjoying spending money is not an excuse to just blow everything. You think I don't like electronics and eating out at nice places? But I resist it so that I have enough to save. You have to ask yourself what you really need. Sure it's nice to get a steak out on Wed night, but I am just as satisfied cooking myself a nice dish of pasta or something as saving a few dollars.

Bottom line is you need to start saving, We are almost the same age, at your age I already had 401(k) set up, IRA's set up, I'm in long-term low risk mutual funds, direct deposits into savings accounts. You have to sacrifice now to be comfortable down the line. You'll be happy in 10 years if you start now.

Talk to a financial adviser if you are really having problems and they will help you get no the right track and tell you what should be doing.

 

i was like you, i couldn't save at all. i have a very secure job and knew money was coming in, so i would spend it. one day i just thought how am i going to pay for a house, another car down the road and most important.....i have to save for a family. so i just cut off the shit i knew i didn't need. it can be tough sometimes, but ya....you need to discipline yourself.

if your single, it is harder (b/c you don't have a wife/kids who are counting on you).

trust me, you can save. i'm a lot better at it now

 

I do have a 401K, and I do have savings accounts set up. I don't eat out on weekdays but I do live with my girlfriend, where I do pay for most stuff by myself, she helps with rent. I know I need to start saving up, I just need to kick myself to do it.

 

You said you have no savings, so it's more than just having them set up, it's contributing to them that counts.

 

Make more money.

 

Having an ING account is an excellent idea though.

 

youre pretty young like me so i can understand wanting to have more fun, only natural. if you've got an IRA/401k and are contributing to it regularly thats good so at least youre planning for your distant future. however, you still need to have an "emergency fund" or something for the near future just in case.

i would honestly suggest just giving up your lifestyle for an entire month, save as much as you can (to make up for what you havent saved a little bit) and then like others have said, after that month, shift to a direct deposit where you store away a certain amount a month in a high yield savings account

having fun at a young age is perfectly normal, just hard to find a balance (as i have also found) but it can be done. the earlier you start saving for near and distant future, the more financially stable your life will hopefully be. i think if you sat down and saw numbers of compounded interest of someone who started saving at 23 vs someone who started at 30 you'd be amazed. like i said just cut it out for a month, or if you cant do that, just cut out half a month or somethin. as long as you can practice self restraint youre fine

 

I don't know your entire situation but if you are living at home and have a real job you will have a real problem when it comes time to move out and live on your own.

When I was your age I lived at home and spent every dime, but I was only making $5 an hour and still going to college.

Once I got a real job I was able to save rather quickly for a down payment on a small townhouse.

 

saving/spending is a tradeoff.....the more you spend now, the less you'll have to spend in the future...the less you spend now, the more you'll have to spend in the future...

There's the two extremes....ppl who spend everything (plus credit), and end up having to work till they die...ppl who save everything, dont enjoy life, and have too much money left over when they die...And there's plenty of points in the middle...

doesnt matter what you choose, just make sure you really understand the negatives of spending everything...and if you want to save but cant control yourself, set up automatic contributions into a 401k, ira (and dont take it out)...

 

I disagree, a little. It is perfectly possible to enjoy life and save money. The key is discipline. To obtain discipline, requires budgeting and living BELOW your means.

I don't take shortcuts to my hobbies in life (motorcycles, traveling, going out) but I know where my boundaries are and when to stop. That's the problem with a lot of my friends... they see the boundary THEN jump across it then say, "let me set up another pseudo-boundary." Discipline will allow you to save and have a fun life.

But yes, I know you were explaining "extremes."

 

Know when to say when.

 

It's hard for me to tell you to save more. When I was your age, I spent a lot. My 1 rule was that I always had enough money in savings to support myself in case I lost my job. And I had to have all my credit cards paid.

I ate out almost every night, most of the times out of necessity, and was in NYC almost every night as well. It was tough for me to save, even working 2 jobs. I enjoyed those years. But I kinda regret it a bit now. If I had saved more, I would have afforded a better place. Oh well, hind sight.

 

Would you mind applying for a Chase credit card? We'd love to have you

 

win the lottery

 

You just got to aim High. Marry a doctor or investment banker. Then money is the last thing to worry.

 

You know doctors have to save as well. Salary aside, when I was first growing up we lived in a small 2 bedroom apartment... it was a shithole from what I hear (I was a baby). A few years later, we moved to a mediocre house. My mother and father saved every penny. They didn't eat out, they didn't buy name brand things and with their savings invested in the stock market and real estate (rentals). Now, 25+ years later after all the sacrifice, it's REALLY paying off.


Example:
The more money you save, the more you have to invest. Year after year, this money is building. Hence, the my favorite phrase. Don't work for your money, make your money work for you.

FYI 1 million dollars @ 10% in an index fund (ballpark percentage) is $100k less the taxes. And less the years around 2000-2002

 

No offense here....but you should be living when you are young...never eating out, no brand names etc....sounds like they sacrificed the best parts of their life (when they are young) to enjoy later in life when it doesnt mean as much.

 

I blew all my money when I was in my 20's and didn't smarten up till I was in my 30's... If I would have started saving when I got out of school, I'd have had my house paid off by now.

 

First of all, I congratulate you on your spending discipline.
You have no savings. This is bad. BUT you don't have any
debt either, and that's quite amazing these days.

NSXNEXT is not yet correct. You are not struggling. Yet.
Savings are important - You said yourself that you had to use
savings in order to pay for bills. And you seem to be aware that
there are huge impending bills in the future (house, kids,
whatever) and want to be ready with savings.
Good for you.

Now, how do you do it?

Simple. Do the ingdirect thing. Stick 5% of your
take home pay in there and DO NOT TOUCH IT unless your
other accounts absolutely run out of money. This is
not vacation money or bill money. This is the 'oh my
god I am bankrupt' prevention account.

Nobody wants to sacrice their lifestyle, but
be honest here - 5% is nothing. Is it going to
crush you to buy a TV that costs $1900 instead of $2000?
Eating out 1 less day every 3 weeks? saying 'nah' to one
out of every 20 impulse buys? Or just waiting till the
item is 5% cheaper?

You'll get used to it. It's not a big deal.
Then when you are used to it, you save a bit more.
Crank it up another percent or two. If you do it
after you get a raise, you don't even notice it.


With Electronics especially, the easiest way to stop spending
so much is just stop buying so much. Why are you buying it?
'Because my current one is old' is a good way to waste money.
How many items do you buy that are genuinely
worth that money? Products drop in price rapidly these days,
can you justify not waiting?