Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You're bonafide coupon clipping, DIYer who trys to save money whenever possible. But do you really save that money? For example; you save $15 on your grocery bill or $100 on a DIY repair, what do you do with the money? Do you set it aside in a separate account or do you even track it at all?
I'm a big coupon user. Not crazy, but I don't miss an opportunity to buy something with a coupon that I know I will use. It's not so much that the saved money goes into a savings account and sits there. It's more that it allows me to stretch my budget farther.
My trick to saving is living below my means. After putting my $49K max into 401K and maxing out ROTH IRA, I just start buying up equities. My income tends to fluctuate a lot year to year, but on average I live off of 25% of my income.
I use 2 credit unions. One has a checking and money market account and the other a money market account and CD's.
Bank 1 (checking/mm) I use for bills and my paycheck is direct deposit. Extra gets moved into the MM. Now I keep emergency money there as well. Once that balance gets to a certain threshold that I've set I write a check and go deposit it in my other bank (mm and cd) and add to that.
So I do use a second bank strictly for savings. I also have an account with Fidelity for investment and when I add to it I take from my "savings" bank..the one with MM/CD only.
For me..spending money only comes out of bank 1 (checking/MM).
It works for me.
I also live below my means and am able to save about 60% of my salary now.
Wow! Some big savers. I could be saving more but rent in my area is very high. I'm looking to be at around 25% of net income saved which allows a little extra for periodic expenses beside this savings. Quite honestly I find saving a little addicting over time. I use and really like Microsoft Money (basically gone now) because it gives me a lot of past, present, and future info and I like seeing my savings after a year of saving.
Currently using bank due to move and needing flexibility. Credit union with 3 CDs. Vanguard for Roth IRA. Just opened Smarty Pug account to set aside higher interest savings every month to be dumped somewhere once it builds up, still maintaining an emergency fund.
I have a savings account that gives 3.5% annual interest. You can save up to 2k/month into the account, so that is what I do. The direct deposit from my paycheck automatically puts 2k/month into this account and I never touch it, except in emergencies (total 24k/year + interest). I also put 5k into my Roth IRA every year and this goes into a stock market account. Unfortunately this loses money, LOL - and I almost never check it since I hate the stock market. Then I have an extra retirement account from work that is mandatory, so they deduct whatever the standard contribution is... and that goes into overseas investments. I never check this account since I have no real choice in this matter... I just noticed that I add maybe 7-8k in here every year.
I think the key is just to put away the money before you use it. I end up saving at least 60% of my income... PRE-TAX. That probably translates to 80% post tax. I live very cheaply. And I spend <$500 / year on out of pocket health related costs since my health insurance is far superior to any options on the open market.
I almost never clip coupons or buy things on sale. I just try not to buy stuff I don't need, period. I also don't believe in buying new clothes unless you absolutely need them (i.e. there are holes in your old clothes, or you are cold). I also stay away from fancy electronic gadgets, laptops, etc. Usually if I need a computer there are people who buy new computers every 1-2 years who will give me their "old", but still very high functioning and relatively updated computers. There is too much production and waste in our society. I have never had an ipod, but I bet there are tons of people who have old ones that they will give to me for free.
I have a savings account that gives 3.5% annual interest. You can save up to 2k/month into the account, so that is what I do. The direct deposit from my paycheck automatically puts 2k/month into this account and I never touch it, except in emergencies (total 24k/year + interest). I also put 5k into my Roth IRA every year and this goes into a stock market account. Unfortunately this loses money, LOL - and I almost never check it since I hate the stock market. Then I have an extra retirement account from work that is mandatory, so they deduct whatever the standard contribution is... and that goes into overseas investments. I never check this account since I have no real choice in this matter... I just noticed that I add maybe 7-8k in here every year.
I think the key is just to put away the money before you use it. I end up saving at least 60% of my income... PRE-TAX. That probably translates to 80% post tax. I live very cheaply. And I spend <$500 / year on out of pocket health related costs since my health insurance is far superior to any options on the open market.
You either live with your parents or you live in a shack or you work for the U.S. government.
I don't track money not spent on a project we would have hired someone to do, as I really don't know how much some projects would cost if I hired someone. Money saved mainly goes into the next project (which appears to be an endless line of projects) we will be working on...i.e. never actually saved, just used later.
A little off topic, but for those who have mentioned saving a large chunk of your income what are your plans for it? Early retirement? Comfortable retirement? Do you ever feel you're missing out by living so frugal?
I don't track money not spent on a project we would have hired someone to do, as I really don't know how much some projects would cost if I hired someone. Money saved mainly goes into the next project (which appears to be an endless line of projects) we will be working on...i.e. never actually saved, just used later.
Been there done that and the only way I will stop is to sell the place and buy a condo that will limit my project spending.
You're bonafide coupon clipping, DIYer who trys to save money whenever possible. But do you really save that money? For example; you save $15 on your grocery bill or $100 on a DIY repair, what do you do with the money? Do you set it aside in a separate account or do you even track it at all?
A lot of what you ask about is in the area called "Cost Avoidance" which means that you find way NOT to spend the money in the first place.
Said money that avoided being spent can then be held in reserve or used for other tasks.
Either way you manage to "save" money even if your bank account doesn't get fatter it doesn't get smaller either. In essence you use what you have ,money and all, in the best possible least wasteful manner possible for your lifestyle. Over time the money you avoid spending will wind up in reserve in a bank account somewhere.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
