Money Managing
Hi there. So I'm 17 and I have to pay all my bills basically except rent. So my paychecks are about 300$ every 2 weeks. I'm going to open up a savings account to save money in there. How much from each paycheck should I keep in my checking and put in my savings?
P.S: I need to save up to pay for driving school + car insurance asap but I can't put all of the money in the savings then I'd be broke.
June 12, 2014
10 Comments • Newest first
$600 a month aint money zzz.
But in anycase for us to truly help you we would need to know how much average you actually have to spend on bills, so we can deduct that and then set up some limits /manage your spendable income.
make sure not to spend money on unnecessary things.
That depends on how much you need to spend on your necessities [eg. bills, transportation fee] and from there, you can save 1/3 of what's left and make it work using the 2/3 for the month
Ride the magic school bus.
Just make a budget on paper. Approximate much expenses you have each month ie, phone bill, internet, etc. Then, set a number for how much you will spend on things that don't have a set price, like your food each week. That number is what you should aim for not going past, and it includes fast food. Take out all of that from how much you make from your job. Whatever is leftover, is what you can put into your savings.
If you're not able to save very much at all, then you should reduce your expenses by doing things like, not paying for cable (just an example, don't know if you do), spending less on food, etc.
It's important to keep in mind that if you're trying to save money, then you don't need to do thing likes going out with friends 24/7 (that will make you spend more), buying new clothes, shoes, electronics all the time.
just keep a book of all your expenses, so you know how much extra $$ u have
[quote=lettucing]you make $600/mo and have no rent to pay. you should be saving a LOT.[/quote]
THIS. Electricity/ food/ utilities are crazy as well </3.
If you're not paying your own rent, is it safe to assume that you're living with your parents/ guardians? If that is the situation, you may be able to get covered under their insurance policy (it depends on the terms but certain policies cover children up until their mid twenties though the rate obviously will go up for them)
so what bills exactly do you have if you dont pay rent? phone bill maybe, thats maybe 60 bucks a month. driving school is such a scam, if you were 15 and needed your permit yeah go to driving school, but since thats not the case why cant your parents take you to a park-n-ride and teach you for free?
you make $600/mo and have no rent to pay. you should be saving a LOT.
I think the general rule is keep 10~15% of what you make in a retirement savings. well, can't help you there if you need driving school and car insurance but you know you'd be broke.. LOL. I guess you have to trade-off being broke if you want a car.