Saving Money

Weiser · 08-06-2008, 06:25 PM

First off, I don't know how to save money. I've never known how to save (edit: i know how to spend lol) money. I always want to be "that guy" that always has cash, that never has to worry and can buy whatever.

Well, maybe to be that guy I need to start saving.

How do you guys do it, if you do it? I started my ESOP plan at work (I contribute 3%, company matches. It goes up to 5% after 3 years) but that's pretty much it in the way of savings...

Any advice would be great

Vautrin · 08-06-2008, 06:36 PM

Saving money is anything but easy.

The most important thing, is restraint, and knowing when you need a product. Case in point, if you have 7 pairs of shoes, why would you need the eighth?

Burn less money on "fun" things that don't get you much returns. Sure, attending concerts and going global are fun once in a while. But if you spend half of your income on parties, then yes, it might be a bit hard to save then.

What is ESOP? I think it is a retirement plan, but I'd be wary to invest in those, especially if the condiitons are dependent on legislation. Case in point, if the Canadian government decides to raise retirement age to get the same benefits by say 5 years, then the chances that you will break even are drastically reduced. Of course, this is already getting complicated as those schemes are often tax-deductible.

Weiser · 08-06-2008, 06:48 PM

ESOP - Employee share ownership plan.

I buy shares of the company, company matches what I put in. I think...I'm not entirely sure - I still haven't got my papers for my account or anything. All I know is that I get free money from my company that goes to savings.

I think what I need to do, is buy World of Warcraft or steal it from my sister since she doesn't have a PC anymore and just start playing that. I've had many a friend that disappeared for MONTHS at a time because the became addicted to that game.

Vautrin · 08-06-2008, 06:55 PM

Ah, I see. Sorry for the confusion.

At least the good thing about the ESOP scheme is that you have some control over the company's performance.

Duke · 08-06-2008, 07:33 PM

I'm terrible at saving money but can always find an excuse to spend it. This is why I was interested in investing small amounts as a team here because it's the only way that will guarantee something useful is being done with it.

...plus I think it would be educational and fun.

darkangelism · 08-06-2008, 09:01 PM

do you carry a credit card balance? if not then the best way is to figure out your monthly expenses, see how much you are wasting on stuff you dont need and build a budget then take whatever is left after taking your money for your budget and put it in a high yield savings or stock account.

Really to be safe you would want an emergency fund that would let you survive six months without working, and beyond that you should invest in stocks or some other way to earn some return on your money.

Luba · 08-06-2008, 09:09 PM

There's a saying "Pay yourself first", put money aside for saving, pay your bills, and then really, really think of what you can do without each month. Going out one or two times less, have friends over, tell them to bring the beer for a change!

Seriously, Weiser, you are such a good guy with the biggest heart, it's time others stepped up!

Fayebelle · 08-06-2008, 09:14 PM

Quote:

Originally Posted by darkangelism

Really to be safe you would want an emergency fund that would let you survive six months without working, and beyond that you should invest in stocks or some other way to earn some return on your money.

I am completely screwed

Luba · 08-06-2008, 09:15 PM

Quote:

Originally Posted by darkangelism

Really to be safe you would want an emergency fund that would let you survive six months without working

I totally agree!

Fayebelle · 08-06-2008, 09:20 PM

I used to be great at this. I always had a nest egg. Now my greatest impulse by instigator is Squish- I can't stop myself when I see something cute.

I'm trying to behave. Plus I have to adjust to the income reduction I accepted for a job w/more time w/him. It's been a process but I think I'm making progress.

Scott · 08-06-2008, 10:14 PM

Quote:

Originally Posted by Fayebelle

I used to be great at this. I always had a nest egg. Now my greatest impulse by instigator is Squish- I can't stop myself when I see something cute.

I'm trying to behave. Plus I have to adjust to the income reduction I accepted for a job w/more time w/him. It's been a process but I think I'm making progress.

Kids....BAH!!!

I would retire in 5 years without them.

Duke · 08-07-2008, 02:01 AM

Quote:

Originally Posted by Fayebelle

Quote:

Originally Posted by darkangelism

Really to be safe you would want an emergency fund that would let you survive six months without working, and beyond that you should invest in stocks or some other way to earn some return on your money.

I am completely screwed

lol, me too. If I lose my primary source of income I may as well dig a hole and bury myself, it's the cheapest option for both me and my loved ones.

darkangelism · 08-07-2008, 02:55 AM

yeah unfortunately lots of people are in the same boat.

The more money you can save and grow the better off you are when you retire, or retire early, though for weiser its probably gonna be easier to save more because he doesnt have kids or any other expenses besides himself.