Comments on: How to Save Money for a Major Purchase

on 6/30/2006 Every time you see a coin or a bill on the floor and you don't know who it belongs to, pick it up and put it in a money-box.

on 6/30/2006 On an average, you would need only about 40% of your paycheck and the rest makes its way out through malls, dining out, sale of the week, deal of the month, once in a lifetime deal, etc.
If you assume that you make about 75% less that what you do, and save that 25% every month, it would reduce the amount of money you spend on unnecessary stuff.

There are fixed, variable and unnecessary expenses. Fixed expenses are rent, utilities, which are pretty much the same each month. Variable expenses are credit card bills, grocery, phone bills, etc.
Unnecessary are, well, you know it.

Keeping aside the money for fixed and variable expenses, the money remaining for other expenses would be much less than what it was earlier, which would minimize spending on other things.

So, put away 25% of your income into savings. Do it right away, if you can put away more - even better.

on 11/22/2005 Invest a few dollars in one of those home financial software programs and learn to use the "reporting" feature. When you click to view the pie chart of your monthly expenses and realize how much you're spending in certain categories, it'll inspire you to cut down, and it will quickly make up for the price of the software tenfold.
Most of them also have fun debt/asset graphs, and it's inspiring to see your net worth grow and your debt decrease. This is especially helpful for people who need assistance to "visualize" where their money is going!

on 11/22/2005 Bring your lunch to work at least 3 days a week. I saved $5 per day, $15 per week, $60(!) in extra dough per month.

on 11/22/2005 When you treat yourself to a lunch or dinner with a friend, skip ordering alcohol. It could easily double or triple the total bill.

on 11/22/2005 Ask your bank for a supply of coin wrappers - they give them out free. Coinstar machines charge 17% - a lot for a little bit of convenience. Besides, it's fun to roll your own!

on 11/22/2005 You should get a job, like cutting grass, shoveling the snow or babysitting. You get money from that and you put aside AT LEAST half of it. You also save a certain amount of money per week. So, you get money saved by a job and some saved weekly.

on 11/22/2005 Also, you only need half the things you think you do, such as cosmetics and perfumes. Think of how many of these you throw out a year because they are too old. Same with all other household and personal articles. Pick the ones that look and smell great.

on 11/22/2005 And once your monthly list is made out, you will only have to make one or two trips, which saves immensely on gasoline. Save gas for good-time trips instead ... then, again, don't spend much on entertainment.

on 11/22/2005 Also, freeze day-old bread. Home-made dressing is good all year round. There are also many recipes calling for bread crumbs. Don't run out and buy every new shampoo, etc., that is advertised. Ask your pharmacist ... it's all about the same.

on 11/22/2005 Buy everything you need at one time each month. Know what meals you would like to prepare for that month, and only buy the food you need. Avoid picking up so many snack foods. You only need to eat at mealtime anyway. Drink water - no pop or beer.

on 11/22/2005 If you're a working stiff, decide how much pay you can realistically reroute into special savings. Every $1/hour = $2,000 in fifty 40-hour weeks! At the end of each workday, unpocket your hourly rate target ($1/hr = $8) and sock it away with the rest.

on 11/22/2005 Remember what's more important to you, and cut back on things that cost you money but aren't so good for you anyway like candy and smoking. Get more money and get better health.

on 11/22/2005 Keep all change in a jar or container of some kind. It will all add up after a while to be some extra money for you. Also share the idea with the kids. It's fun and teaches them responsibility.

on 11/22/2005 Basically, whatever change you have in your pockets at the end of the day, put it in a jar. After a month or two, you'd be surprised how it adds up. We have a Coinstar machine at the local Pathmark. They will gladly take it and count it for you. Try it!