FundRobot » Bond Funds » im 19 and make $50000 a year but have nothing to show for it?

Old   #1 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

Hey I just can't save money! Iv tried the envelops iv done a budget. everything! My work requires me to be on the road all the time and it seems like I'm always nickel and diming myself to go to death or rent is too high or something! Idk what to do so I hope someone has some unheard advice

PrettyHot88 is offline   Reply With Quote
Old   #2 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

You have to set aside a certain amount no matter what
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Old   #3 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

You make about $4,000 per month. After taxes, you probably net $3,200 per month depending on deductions and the state you are taxed in. You need to bank 15% of that $3,200 each month. That's $480 each month that you need to pay yourself first. Then you have about $2,700 each month to pay for housing, food, transportation, insurance, clothing etc. Make a budget and learn to stick to it. But always pay yourself first. Never touch your savings. You will need it for retirement and when you lose your job. Invest in the 401k at your place of employment. Invest the max to take advantage of matching funds. If you don't have a 401k, then open a Roth IRA. Contribute 15% each month. You can do this.
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Old   #4 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

Look at your expenses. If rent is too high, find cheaper rent. If you're always on the road, then rent a room from someone instead of an entire apartment (or live at home).

Don't eat out as often or choose less expensive restaurants. Cut your cell phone bill in half by dropping your minutes.

Drive a less expensive car.

I really love You can connect your bank accounts and credit cards (and it's free). It will help you categorize your transaction so you can really see where your money is going and being wasted.

Another good thing is that you can't spend money you don't have. Make sure you are maxing out your 401K and have a portion of your paycheck deposited into a different account. If you can send 10% of your paycheck to an investment account, you'll be well on your way to setting up a nice retirement.

Part of it is growing up. You're 19. You want things and you want them now. You haven't learned to prioritize your spending or control yourself. Don't feel bad. I know 40 year olds that haven't learned that either. Find ways to learn these lessons now to set yourself up for a good financial future.
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Old   #5 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

Telling us more about your self would help.
Where you live plays a big role for cost of living. $50,000 a year in miami wont take you as far as $50,000 in Houston. You said you have a job that keeps you on the road. Well if you can use your car gas/mileage as a tax deduction you may want to concider living further away from work to a more suburban/rural neighborhood where eveything from rent-utilities-groceries will be cheaper. Assuming you are single you should not have to sacrafice too much to save . I suggest buy a cd to start, from a credit union, you will pay about $50+ to start one and contribute a set amount each month you can get them in time incriments 1 year is good when it matures you role it over to another one you can set up automatic payments so you never deal with it but once a year to role it over. With this you never loose and always gain albiet you gain slower than stocks but better than a savings account.
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Old   #6 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

you need to stop appeasing your every want. I watch people spend 5dollars in the morning on sodas and power drinks at the gas station. then spend more on the way home instead of having it sitting at the house in bulk for a cheaper price. its planning ahead or plan to fail. buy everything you need to make it through the week and put money in a saving you won't touch, in checking for emergency while leaving a little cash on you so taking money out the bank doesn't become a habit.
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Old   #7 (permalink)
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Default im 19 and make $50000 a year but have nothing to s for it

If you really want to save money, it's not too hard.

Go to the bank. Set up a new bank account for savings only, no internet banking, preferably a passbook account you can only access over the counter. Then, get your employer to put 10% of your income into that account. This will leave you with only 90% of your regular income to live on. Out of that, you pay your rent first. Then your bills (you can pay extra on rent and bills and be ahead. If you know you're going to spend it, it is better to pay extra on the bills and rent and be in credit a few hundred dollars so that you can't spend it.)

Then you can spend the rest on whatever you like.

You need to do a budget and just work out where your money is going. For a month, keep a spending diary and write down everything you are spending, and what you are spending it on. Doing this will make you see at a glance where your money is going, and will help you identify things you can cut back on. You may find there are things you are spending your money on that are not really making you happy. It would be better to spend your money on a luxury you really enjoy than on ten things you don't really enjoy. For example, instead of buying a bottle of water and wasting $3, if you wait 20 minutes until you get home, you can drink for free and put that $3 towards something you really enjoy -- like a six pack of beer or a pack of chocolate biscuits or something. This is what people do when they manage their money -- they only spend their luxury money on things that make them really happy. A lot of it is knowing yourself really well.

You say you are on the road a lot. You need to prepare for that. You should pack a lunch box in your car with stuff that won't go off that you can eat on the road. A snack tin of chick peas, or some nuts, or some dried fruit, or some cereal, for example. That way, you won't get caught out. This is your snack box and it must live in your car. Buy an actual water bottle, and fill it at home in the morning before you leave. Like coffee? Make some in a thermos and bring that! If you know you're going to be on the road, pack a lunch. Doing this saves hundreds, sometimes over a thousand dollars a year! It is always cheaper to bring your own.

I would recommend you go to the library and get out a book or two on personal finance. They are full of advice -- better tips than you will get here. You only need to follow a few little rules and tricks to get ahead.

If you know you have poor impulse control and are not very disciplined (I anticipate that this is a lot of your problem) you need to make it hard to spend your money. I earned less than half of what you earn, and I paid a house off in 5 years. I didn't go without -- I got married in that time, and weddings cost a packet. You just need to learn a few tips that work for you, and stick to those.

In your situation, I recommend NEVER getting a credit card. I think you have poor impulse control. A credit card would be an uncontrollable temptation for you, so avoid them. In fact, if you see something you want to buy, (like a gadget or appliance) you should wait 24 hours and see if you still want it. Never be coerced by sales people, because there are good deals every day. If it costs more than $20, you need to compare the price of the item elsewhere. And you need to wait -- I cannot stress how important this is. You must wait and not spend money on stuff the day you see it. You will be amazed how much stuff you really don't really want, when you've had a few hours to think about it. :)
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