Keys to savings?

[Kathy]

The experts agree. The key to ongoing additions to your savings accounts and your retirement plan is to pay yourself first.

Do you have a key to saving?

I know one friend who had gotten into the habit of buying a candy bay every afternoon. She changed her eating habits and decided to reward herself by saving that buck she was spending.

At 75 cents for a candy bar, she saved 275.00 per year....

[lkayscha]

Absolutely! Pay yourself 1st put it away and DON'T TOUCH IT. Take advantage of a employer's 401K program even if it is a small match or no match. Put 2/3's of your SELF pay in 401K and 1/3rd in a savings account. DON'T TOUCH IT. It starts with small changes. dinner out once a week. Pack your lunch 3 or 4 times a week. Make coffee at home - skip the Carmel Macchiatto at Starbuck's 4 times a week and you are off to a great big savings or 401 account!

[Marian Paroo]

At 75 cents for a candy bar, she saved 275.00 per year....


Is that what a candy bar costs in the USA today?!

Wow, when I was a girl it was 5 cents!

[YellowRoseTex]

We have always paid ourselves first. A percentage of our paychecks always goes into savings before we do anything else.

One of the other things we do, we bought a slot machine for our house. Yep, a real live slot machine. We use real money to play and every so often we take the money we've put in out and put it in the bank. Dh bought a new set of gulf clubs with some of the money and we've also had spending money when we go on vacation. And it's alot of fun.

[kelly15972]

I totally believe in paying yourself first! So much so that I deposit 20% of every paycheck into my 401K. At first it hurt, but now I don't even notice the money missing.

We also are diligent about putting a set amount into our savings every month. Although I do have to admit that there have been times that we have had to dip into it for emergency things like car repairs, or a broken water heater. It sure is nice to have the money to fall back on when you need it!

Kelly

[DayDreamer]

We always pay ourselves first. We have a set amount that is automatically deposited into a couple of different accounts each month and we add additional funds to it regularly. It's nice to know that there is money there if we need it!

[smalltowngal]

For those of you who have read Smart Women Finish Rich you have heard of the "latte factor". Basically it is putting away money for yourself by giving up small things during your day. For instance, giving up your morning coffee at Starbucks, a donut, a magazine from the grocery store, a soft drink, candy bar, etc. Once I read the book I commited to evaluating myself and giving up my small daily buying habits. I realized that during a 5 day work week I was spending close to $5.00 a day on differnt things that i could easily give up. Multiply that out 5 days x $5.00 x 52 weeks and you get $1300.00 a year!! I have been putting that money in savings, towards my IRA and other investment accounts which are earning intrest. Just think, in 10 years that is $13,000 that is sitting in intrest-earning accounts...just because I am giving up my daily bad habits of soft drinks and candybars!! WOW! :yahooo:

[Kate]

I realized that during a 5 day work week I was spending close to $5.00 a day on differnt things that i could easily give up. Multiply that out 5 days x $5.00 x 52 weeks and you get $1300.00 a year!! I have been putting that money in savings, towards my IRA and other investment accounts which are earning intrest. Just think, in 10 years that is $13,000 that is sitting in intrest-earning accounts...just because I am giving up my daily bad habits of soft drinks and candybars!! WOW! :yahooo:

Amazing how something so small can add up to something so big!

[DieNarrin]

I started putting away on my 401K at 5%, than each quarter raised it a percentage. So it took awhile but before you knew it I was putting away 15% of my salary. Each time I got a raise I used it as an opportuinity to increase my percenage. A small decrease in the take home wasn't as noticeable as if I had done it all at once.

[batgirl9923]

I truly believe the best way to save is to pay off your credit card balances each month, if at all possible. The interest on credit cards will kill you!
Our personal goal is to have all of our credits cards paid off by the end of this year, and so far we are on track, barring any unexpected emergency.