Stay away from credit and stay out of the big box stores. Big box stores make money off of "impulse buyers". People who see it and have to have it. So instead of saving money in those stores, the average people will blow $3,620.00 a year on stuff they don't need, but thought they did. Make a list before shopping and stick to the list.
If you have a lot of debt over 5% interest, I suggest paying this off first. Mortgage debt and student loan debt is the good type of debt. As long as you are able to make your monthly payments, keep going. I recently consolidated some revolving loans through my credit union. Now, I know exactly when that debt will be paid.
Next, consider your budget and max out retirement savings that have a company match. If your company matches 50% of the first 5% contributed to your 401k, you are essentially saving 7.5% in your retirement account by contributing 5%. It's like getting an investment that returns a whopping 50% in the first year.
Take advantage of dollar cost averaging and invest in a mutual fund or index fund. I've written a hub on this topic.
http://dpsimswm.hubpages.com/hub/Should … l-Planning
Great question, and good proactive thinking. As a financial professional I help clients do exactly what you are asking about and more.
Before I answer your question I would like to recommend a great course in personal finance and you can sign up for one at www.daveramsey.com/fpu hopefully you will have one near you. I think that Dave Ramsey's strategy is very well thought out. Here it is...
First establish a $1,000 emergency fund. Which will now allow to pay for emergencies without getting into more debt, hopefully.
Second, start getting out of debt using the debt snowball method as fast as you can (if you have debt, other than a mortgage). This is super important.
Third, once you are debt free (other than mortgage) build up a "fully funded emergency" fund which is 3 to 6 months of your income. Once you are out of debt and have a fully funded emergency account, then you should start investing into mutual funds, IRAs, 401(k)s etc. The logic is this if you have debt payments at 18% which are guaranteed/for sure it makes no sense to invest in a mutual fund where you maybe earn 12% and it is NOT guaranteed. Basically once you are debt free and financially strong with a solid emergency fund. You will be in the best position to save for the future and do the rest of the financial steps that come later. Yes it will be hard, but it is definitely worth it.
Contact me if you have any questions.
I have to agree with Dennis. Dave Ramsey or Crown Financial are two of the best programs out there. Another One that I hear was the 70/30 principle. You should get to the place where you are able to live off of 70% of your income including all of your debts.
Give 10%. If you don't sow into others, you will never truly know freedom. As a Christian, I give to my church but if you are either not involved in church or are not a Christian, then find an organiztion that you have researched and that you believe in and give to them.
The last part is to pay yourself 20%. Save this amount in the safest, highest-yielding instrument you can find. I believe IRAs are highly recommended.
1. Spend less and save more.
2. Learn about investments.
3. Invest in what you understand and are comfortable with.
4. Never, never, never give your money to someone else to invest for you. Never.
Small Savings is the best method of saving for the future. If you can save very small amounts then it is better to collect cash in a box of earthen savings box and deposit it in your Savings Bank account when it is full. When the Savings Bank account has a decent account balance then it is advisable to deposit in some long term fixed deposit plan.
Before expending any thing, think whether it can be avoided? This practice will train you to spend rationally, and will result into saving for future
by Josh and Lindsey 7 years ago
What's your best tip for saving money?What tip would you give someone trying to pay off debt or start saving?
by Andrea Lawrence 4 years ago
What's the best financial advice you can give?
by Shil1978 4 years ago
What kind of mutual fund is the best to invest in?
by young inv 9 years ago
Hello everyone , im 18 and am learning to be a carpenter in my second year , I have recently become interested in investing money i have saved into something , i come up with theories at work about why such and such is a great place to invest my money , but before i take a leap , i need to know...
by Paula 4 years ago
What are your best tips for saving and keeping more of your money in life?Sometimes you can't do much to increase your income, but what are some things you do to hold on to more of what you do get? Some people that become millionaires are the best "savers." What are your...
by T. R. Brown 6 years ago
I have my opinion, but which one do you prefer and why?
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|