• Recent Posts

  • CD Rates At An All Time Low
  • Saving From An Early Age
  • Resisting the Computer Temptation
  • Saving Tips For Moving
  • I Hate Being Broke

• $Current Savings$

  $35.00

One thing I stress to all the young ones I know is the importance of saving in your youth. Unfortunately, the younger a person is, the less they seem to think about the future. There are so many good options for young people trying to plan for the future. Besides normal savings accounts you could consider opening a Roth IRA account or a traditional IRA that comes with additional tax benefits. Remember that your investments are really worth a lot more the earlier you start.

One important aspect of saving that young people often neglect is budgeting. It is very important to budget so that you don’t look at your end of month bank statement and wonder where your money went. When you manage an organized budget, you can tell where every cent goes and thus can cut back where needed. For example, young people tend to spend a ton of money on going out to eat, but usually they don’t realize how much it really costs them until they see it on paper. If you eat out 3 times a week and spend $20 each time, you’re already spending $240 every month. And if you dine in you’re probably looking at a lot more. The most powerful budgeting tool in my opinion is on most of your computers right now. Excel has all you need to budget wisely.

After you have a set budget on paper, you can start allocating a portion to savings. Now that you can see exactly where your money is going, you can pick an amount you are comfortable with to be directly deposited into a savings account every month on the day you get paid. It is important to include the savings in your budget and treat it like a house or a car note. It must be paid every month. If at all possible make it a direct deposit so that you have no choice. Also I mentioned to do it on the same day you get paid. This will help you see that this amount is not really yours for spending. If it leaves your checking account on the same day your check comes in, you don’t have any time to accidentally spend it or time to justify spending it on something that YOU REALLY DON’T NEED! LOL.

By budgeting and saving from an early age, you can insure that you will have a safe financial future. But who knows I might lose a bunch of it in the stock market. Lately I have been learning how to trade options in the market, and have been doing pretty well for the time being, but even that is not too stable.

Comments

• New Tweets

• Other Finance Sites

  • Line Of Credit Blog