How much money do you put aside for savings and how often?

[BlondGirl]

Please be honest? Tell me how you save that money too.

I currently purchase a U.S. Savings bond (almost) every time I deposit a payroll check. I try to do one 50$ I bond, under the belief that ANY savings is better than NO savings while I am getting out of debt.

Tell me your methods please--I am always trying to learn about such things.

 

[Never]

Cheyenne..
Come here Cheyenne..

 

[Bob Peale]

we're bad, but $125 a month goes into each of the things' accounts

 

[April]

We have some money automatically taken out of hubby's paycheck every month, so we never see it. And it's very inconvenient to access it.

Savings bonds are not a bad way of saving, imo. Certainly safer than the stock market these days.

 

[Gilly Bean]

Savings account? What's that? Hmm... Well, our current method is... while we are WAY in debt, we pay our rent, utilities, and some of the school loans each month, and hope to hell we still have enough left over for groceries at the end of the month. Luckily, this -should- be changing soon. Students loans have agreed to lower their monthly amount, and rent went down when we moved. So, once we get caught up on back stuff, we will be putting money into my husbands 401, and starting a high interest account in town. Down side, is that you can't make regular withdrawls, but if it is just for an emergency, then it wouldn't matter.

Gilly Bean

 

[registered "^^"]

Save Money!

What a novel idea. thanks.

 

[BlondGirl]

Savings bonds are not a bad way of saving, imo. Certainly safer than the stock market these days.

I have never understood that stock market at all. It seems like just a big gamble where you expect to break even and hope for a profit. No thanks.

I am too broke--if I am going to gamble, I will hit the casino.

I wish my company offerred the option of taking the money out for me--that is not an option at all though with my small clinic. I just gotta get that other job!!!!!

 

[lobito]

10 % each week

 

[KillerMuffin]

About 130 a month in US dollars. When the hubby gets a paycheck that'll go up to about 750 a month in US dollars. We live on very little, why change it?

 

[xlc67]

Hey BlondGirl.....

Do you mean before my wife ran off and sued me for alimony or after...lol...


Just another cash cow here...

 

[Cheyenne]

Cheyenne..
Come here Cheyenne..

Somehow I knew I wouldn't be able to get around this one. LOL

I'm not going to give current $ amounts, but I'll tell you what I did before and what I do now. You have to remember I'm single, no dependents, and I have a very good job.

A long time ago when I first bought my house, my savings plan was an automatic $100 US Savings bond each paycheck plus participation in the company employee stock purchase plan. I don't remember what % of my salary was deducted for that- maybe 5%. A savings account/money market fund for whatever else I could spare. Plus $2,000 per year into an IRA.

Now, I put the maximum allowed by the IRS into my 401(k) plan through automatic payroll deductions and my company matches a portion of that. My 401(k) is in an aggressive growth fund and international fund. $2,000 per year after tax goes into an IRA, the maximum I can put there. My IRA money is in various stock funds. I have a set amount pulled from my savings account each month that goes into a Blue Chip stock fund. I keep a fairly set balance in a money market savings account to cover an emergency. Once a month I write a check and send it to a brokerage account - the amount will vary depending on what I've spent that month.

I am able to save a high percentage of my salary because my expenses are low at this point in my life. The savings theory holds true though for any income level. As previous posters have said, the automatic deposit to some kind of savings account/ savings bonds/stock fund/etc. is the easiest way to get into the habit of saving. Actually, equally easy is the automatic deduction on your paycheck for 401(k) plans. Any money you can put away before you ever see it is easier to hold on to.

If there was one piece of advice I'd give, I'd say to check out your 401(k) plan. If you aren't already putting in as much as you can afford, that is where I would start to increase your savings. It is especially good if your company matches all or some portion of what you contribute. Not taking advantage of that match is like turning down part of your paycheck.

 

[Cheyenne]

We live on very little, why change it?

That's actually another great approach. Some people take any raise they get, or any type of bonus/tax refund/etc. and always put that amount away into savings. Kind of like "found money" that you didn't have before and won't miss.

Another idea- if you have credit card debt at high interest rates, you are better off paying down debt rather than putting your money into savings. This is assuming you have some emergency fund money set aside, however. The return you get on reducing your credit card debt will likely be much higher than any savings bond or savings account will pay you.

 

[PacificBlue]

If there was one piece of advice I'd give, I'd say to check out your 401(k) plan. If you aren't already putting in as much as you can afford, that is where I would start to increase your savings. It is especially good if your company matches all or some portion of what you contribute. Not taking advantage of that match is like turning down part of your paycheck.

I know I could max out a 401k and this is often what people will tell you to do...but would it be wise to just contribute up to the point where they match and then invest the rest of your savings in other places? What do you think?

BlondGirl...I've read some really good books the past several months on ways to carve money out of your spending each month, I could forward you the titles if you like? They all fall under the catagory of "frugal living". Let me know. I'm not saving right now as I'm unemployed so I can't give you an answer to your question. Let's hope that changes on Thursday. Hope, hope, hope.

 

[Samuari]

Our employee stock purchase plan lets us deduct as little as $5 per pay period, which is all that I felt that I could afford when I first stated there. When I got a merit raise, I increased the contribution. But we use this as more of a savings account for christmas purchases, and things like that. The Co adds 15% and the fees are fairly low to sell (but it takes about a week to get your check), so this works fairly well as "Christmas Club" type account. I also have 5% withheld for my 401k, and the Co has a profit sharing plan, both of which are really not available untill retirement, without pentalities.

 

[teresafannin]

I have a fairly good 401k plan working for Target Corporation. The company matches what I have taken out of each paycheck. I have part of it invested in Target Stock & it is doing well. I live fairly inexpensively, love the clearance racks & thrift shops. Several years ago, I accumulated a lot of credit card debt. I have worked very hard to pay them off & am seeing daylight at long last. I drive my car more frequently than the truck, it gets better gas mileage. I also round up my checking account. Whenever I write a check, I round it up to the nearest dollar. Once a year, I go for a month writing no checks & see how much I have accumulated, it is always at least 100.00. Then I balance the checkbook & start over. It sounds silly, but it insures that I always have a bit extra.

 

[Gilly Bean]

Actually, it isn't silly at all. We always do that. After the first time of doing it for a few months, we were very happy to find we were sitting on around $230. It came in real handy with unexpected repairs, and usually provides a nice cushion if you might have over written a check from your balance.

 

[fgarvb1]

i have 12% of my pay check put into a 401k plan. the company i work for matches 75 cents on the dollar. my wife has some of her pay check put into mutual funds. most of my life i did not save jack.

had i started saving when i started working my ex-wifes would have had all of it anyway.

 

[Cheyenne]

I know I could max out a 401k and this is often what people will tell you to do...but would it be wise to just contribute up to the point where they match and then invest the rest of your savings in other places? What do you think?

Depends on what the purpose is for your savings. If for retirement, I'd put more into the 401(k) if I had it. It goes in tax free and grows without you paying taxes until you make withdrawals from the plan. By then you should be in a lower tax bracket. If savings are for something other than retirement, then it makes sense to diversify into something else. But, in general, I'd put as much as possible into the tax deferred 401(k) option.

 

[xlc67]

I like to make jewelry out of popcorn and sell it at the zoo.

 

[The_old_man]

Being retired we no longer do much saving. While we were working, max out both IRAs, I was maxing my 401K. Untill IRA accounts became available , a $100 savings bond a month. The bonds are now reaching final maturity and paying about a thou a month(taxable).

My father didn't trust FDR's Ponsi scheme, so also bought bonds to supliment anything else he would get.

 

[Closet Desire]

Some reassurance...

...about the stock markets.

Most people who successfully invest in the market use a buy and hold approach combined with diversity. The simple truth is that the stock market is one of the only investments that doesn't lose money in the long run. How's this?

Unless your investment pays more than the rate of inflation, fees, and taxes then you lose money--the buying power of your savings is less than when you invested it.

Mutual funds can be set up the same way as savings bonds with a small monthly investment ($50) going into your choice of funds. Long term, ie. ten years, it will beat savings bonds, banks, etc.

If you're on a budget and you want to give the stock market a try then go to www.sharebuilder.com where you can open an account and buy fractional shares. If you have $100 to invest you can invest in a stock even if a single share price is more than $100.

Finally...if you can invest in a 401K where your employer contributes then you should be socking away as much as allowed, but keep an eye on what they are doing with their investments.

Oh, the original question...I save about 30% of our gross income.