Hey, I’m 17 I’m a full time taper.
I’m looking to buy a car for about 15,000$. I was just wondering whats the best way of saving that amount of money? I’m terrible at saving, money burns a hole in my pocket. I have no bills, or nothing to pay, so all the cash I make is straight profit .A loan is out of the question, I must save 15,000 in the bank, and buy straight cash. I’m looking to buy within 10months time.
If I budgeted properly It would be easy, but i still will need spare money…. Can anyone dawn in, some helpful tips to saving for this long without giving and withdrawing.
thanks
Tags: amount of money, dawn, full time, helpful tips, hole in my pocket, looking to buy a car, money burns a hole in my pocket, saving money, spare money
Take some money out of each paycheck and give it to your parents tell them to hold it. If you put the money in a bank you still can take the money out and blow it. This is one way you could do it. I did it this way when I was younger.
divide your pay into enough money to live off for bills, rent, food, rates etc. and then the extra put in the bank. I think you are allowed to get certain accounts that you can deposit money into but you cant withdraw anything from until a certain time. I hope this helps but the best thing is just to imagine how good that car will be when you save and that should be enough motivation to save. Peace
open a joint bank account with , say your mum, that you can only withdraw money with BOTH signatures , pay in 350 a week / 1400 a month 10 months you have 14/ 15 k tell mum no withdrawals for 10 months BINGO you have your car
Well if you have no bills to pay, then congratulations as the tide is in your favour.
First, identify your weakness meaning your splurging like you usually spend money on what kinds of stuff. Correct it and you will spend less on unnecessities like movies, dvds etc
Second, how you mange your money ? It is best to open a high yield account that pays your interest on a monthly basis so you are able to stretch your money as much as possible.
Thirdly, I suggest you bring your own lunch. And if possible, ask your parents to buy the ingredients required so you are not spending a cent on food.
Fourly, Look for a job that pays well. What are you talents/abilities like music, art or are you able to talk well ? If you are able to talk well, why not try becoming a part time real estate agent(Yes, we all know the current sub-prime crisis but there are still many millionaires, who will now take advantage of the current situation to invest in them) ?
With all these, you should be able to meet your goal.
First of all, if you want to set yourself up financially, don’t blow $15 000 on a car. That’s ridiculous. A car gets you from A to B, and doesn’t need to be anything fancy. You’re just wasting your money if you buy more car than you need.
If you lower your purchase price to even $10 000, you’ll get a great secondhand car. And you can put the other $5000 in an investment. In ten years time, you could have close to $20 000 from investing that five grand. It’s ‘compounding interest’. Basically, when you invest, and then reinvest the interest your money earns, eventually the interest earns more interest than you are able to match by your contributions.
I suggest, if you’re working, to go to a bank and set up a separate "Savings" account. Make it a passbook account that gets good interest. That way, you can only access the money through the bank branch, and you can’t end up spending it all on beer and kebabs at 3am.
Then, get your employer to transfer part of your wage into that account on pay day. At a bare minimum you should be saving 10% of your income, but since you have no expenses, I’d go for at least 75% of what you earn, and have the remainder transferred into your everyday account, as an ‘allowance’ to spend on stuff, like drinks with friends, movies, and clothes.
If you set your banking up like this, all your saving happens automatically. You don’t need to remember to put anything aside. You still have access to your money in an emergency (like medical bills or something) but you don’t see it every week, so you don’t notice it’s not there.
After a few weeks, you’ll get used to living on less money. You adjust to it. You change your spending accordingly.
Also, after you’ve bought your car (and $15 000 is a ridiculous amount to pay for a car. You don’t need a car that expensive) you can keep the savings in place, and stash away money for car repairs, and later investing. I would see a financial planner about this, as they can give you really good advice.
Please think twice about spending that much on a car. It really will cost you in the long run. Check out some compounding interest calculators online, and you’ll see what I mean. You might think having a flash car is important now, but I invested at your age ($6500) and less than ten years later, it was worth $18 000. Pretty good deal for sitting around doing nothing. You’re young enough to really make a difference to your finances right now. If you stash some away, when you come to buy a house in your mid twenties, you’ll have an instant house deposit. Please consider it. You’ll be very glad you did.
Best wishes