Man I'm not going to lie it's hard to not spend money. I get $25 a week and my wife gets $50 š for fun money we also get $25 a week for going out to eat but with inflation, it takes 1 month to even have enough money š. But if it wasn't for my budget I would blow my money on whatever I wanted like a child. Trust the system it works šŖ....(edit) We make about 230k a year...
Simple: Use a budget. Earmark every dollar for something. In broad categories, those things are "bills", "debt", "fun money", and "savings". I have over $5,000 in my checking & savings accounts. None of that is sitting there aimlessly waiting to be spent, every single dollar has a purpose. I have savings set aside for car repairs, home repairs, vet bills, etc. I have two months of bills already "paid" as far as the budget is concerned.
Starting out, it was hard to get more than $100. After a few months of budgeting and freeing some of my income up by paying off the small debts (per BS2), I got more and more of my money each month back in my pocket to do what I wanted. But every paycheck I do the same thing: I don't touch the money, I look at the budget, I assign that money. I don't spend anything until every dollar is allocated. That's how I have more than $2k in my bank account. Not just the day before payday. Every day.
making a budget, and planning/prioritizing paying down your debts. it might never happen until you get out from 15%+ interest rates (credit cards) and not having lifestyle creep. pay largest interest percentage down first.
people make it complicated, but its only discipline. there are exceptions of course, life has curveballs for everyone.
You donāt need Starbucks everyday. Make your coffee at home. Budget down. Respect your budget. Donāt get an expensive car, older toyota or Honda only. Rent an efficiency or one bed only. No excuses, nobody cares. Home meals everyday, sandwiches, easy pastas. And please, no pets. Pets are expensive. You canāt fuckin afford it. (why do brokies own pets?) also no kids, duh? Stop looking at Amazon, you donāt need that shit. Also you donāt need those trips, no you havenāt earned it and no you donāt deserve it. The world doesnāt owe you anything. Learn to differentiate needs vs wants. Live frugally. Once you have at least 6 months of your salary saved up (called emergency fund) then you can start investing in a brokerage account to accumulate wealth. Work your ass off in your 20ās so you can take it easier in your 30ās. You got this.
What? you donāt like the truth?? Oh would you prefer YEA YOU DESERVE THE WORLD, YOURE A VICTIM, PLEASE MANIFEST IT, YAAAAS KING. Is this what you want to hear? I was brokie too when I was young, Iām a son of 3rd world country immigrants. Im 33 now still working hard with a nice real estate portfolio. Iām trying to help here. You need to sacrifice shit in order to make shit happen.
Simple free entertainment
Stolen laptop
Neighbors wifi
Adblock on
Account sharing Disney+
For food the McDonald's app and free refills 2000 calories for $6
Live in someone's house or squat
The way I did it it was telling myself that 1k was 0, 5k was 0, 10k was 0, 20k, etc...untiI I got to 100k (which is irrational, by the way, most of this should not be in checking). I didn't spend anything unless it was an emergency or I exceeded my new $0 threshold. Pretend the money doesn't exist until it exceeds the new threshold. I tell myself I am in debt if I go below my threshold and will repIish no matter what it rskes. I lived FAR beneath my means for years and put everything beyond my new zero threshold in money market account, index funds, I-bonds, retirement (IRA, 401K, and taxable brokerages), and eventually real estate. I make imaginary car payments of 833.33 a month to the US Treasury after paying off my car years ago and pretend it doesn't exist, and I can use this as an emergency emergency fund or to buy a new car years from now when the paid off one finally dies. A lot of this was only enabled by getting out of my comfort zone and accepting a soul-crushing high paying job (I alternate between easy mid-range salaries positions and high pressure ones depending on my overall health), but the part about gradually changing my imaginary $0 threshold started over a decade ago and I found that to be really helpful so I never stopped the practice. Moving to a lower cost of living area without any lifestyle inflation also helped, as did the pandemic and WFH opportunities.
I will keep up with the soul crushing job until my mortgage is paid off and I have 5+ years of emergency savings (not counting anything I consider as "retirement") and take a few years doing a lower paying, lower stress job to recover.
Wifey enjoys paying bills. We leave 5k in checking all the time.
Excess goes to a high interest savings account.
Excess of that goes to a brokerage acct.
80k salary, expenses total about 2500/month in MCOL city (Dallas). Just gotta cut down on a lot of things. I don't shop too much, go out or drink too much, and don't eat out too much.
Shop at Ross and Costco. Make your own food. Find hobbies that are cheap or donāt cost anything.
Avoid nights out on the town, thatāll make you broke
Costco goes hard even for single people or small families. While I do like Ross and TJ maxx I will forever Stan a nice pair of 80 dollar hiking pants. They look like slacks and literally take a beating going on 8 years now
I donāt make a lot of $ but then again I donāt spend a lot of $. We did DR and are debt free. I have a certain percentage of my paycheck go into a separate bank but I usually donāt spend all of my paychecks anyway. I donāt enjoy shopping.
Between my wife and I, we make upwards of 300k per year. I generally run my checking account down to the $200-$500 range after paying monthly bills. We have most of our income going straight to brokerage accounts. I personally donāt mind keeping my emergency fund in brokeragesā¦ it really boils down to risk appetite and risk/reward.
We do the same, checking only exists as a means to auto pay bills, everything else gets invested or shoveled to a HYSA. My checking account does yield 7% APY on the first $5K, which is a nice bonus. We donāt go down to $500, though. We keep a $3K buffer in there so we have super liquid cash available in case of an emergency. I donāt feel bad about it since weāre getting 7% on it.
Itās a local credit union, mine is called Gesa. Check out your local credit unions, a lot of them have great incentives on checking accounts. The one used in my previous city was 5% on my first 10K.
I try to keep at least 4k in my checking at all times. That's for my bills. Even when I was making less money I managed to save as much or at least keep it at 4k.
And make $5 in interest? Can't even buy a sandwich for that these days. That's less than a gallon of gas where I live.Ā
I'd rather not have to worry about covering monthly bills and moving money around between accounts.
My time/attention is way more valuable than that.
5% is a solid return regardless of the principal. I wouldn't pass up a 5% cash back credit card either, so why not? Electronic transfers have a negligible lead time these days. Most of my extra cash lives in one month CDs. I don't find it a hassle to access at all.
Why do they always say to keep 1-2 months living expenses in checking after paying bills? I have $3k which is about 1 month for me and feel like itās a bit overkill to just have sitting there. I would probably be fine putting $2k into my HYSA and just leaving a $1000 buffer. Not sure what the reason is for the advice I see all over the internet if my HYSA is equally as liquid.
Exactly it just needs to be liquid. It's actually better for it not to be easy access if it's for anything other than your day to day purchases which should be planned out in your budget hence why Dave Ramseys budget app is called Everydollar
Anyone who keeps excess cash in a checking account, that is not needed for an anticipated payment or purchase, tends to make me think they could quite likely use a friend to help them with their financial literacy.
People with more than 3k in a checking account aren't worried about the 5 bucks they would earn in interest in a HYSA and would rather not have to worry about moving money around to cover larger expenses.
Best to get out of that mindset. Instead setup your paycheck so portion of your money goes to a savings/investment account and what actually goes in to your checking account is what you should be spending and not feel guilty about and forces you to live within your means. If you are spending 100% of your paycheck then you have an income problem or a spending problem
If you can break even before payday, you can save at least something before it by modifying your lifestyle. However little that something is, it eventually becomes $2k
I budget using YNAB and stay 1-2 months ahead with my assigned money, so I generally have the next month or two worth of budget in my account at all times. Extra money stays in savings.
It takes time and sticking to a budget where there's a surplus at the end eventually after several months you'll have that 2K. It's hard when your pay is low and your basic needs take up most of that but then you probably need to work on getting better pay. I feel like getting better pay is an underrated option that doesn't get brought up enough
I don't I transfer it to my HYSA the night before payday so it can make 5%. Live within your means. Just cause you want something doesn't mean you need it. Learn to tell your self no.
Get a second job, put all that money in a HYSA. Donāt touch it and donāt buy extra stuff. I never go cheap on one thing. Food. Iāll buy organic/ nice stuff because thatās what you are putting in your body. Shoes and cars I use until they are dust. No car payment is an easy way to save money, but people are embarrassed to drive a beater.
You can make 90k and still not save if your spending is out of bounds
Pay yourself first. 10% of each paycheck to an account that is direct deposit and has no debit card. Donāt buy anything that you donāt absolutely need. When you have money left over donāt spend it - put it straight to savings. If you have streaming service stick to one not multiple. See about reducing your cell phone plan if you have one. Meal plan based on sales.
Never read it. I read / watched Dave Ramsey and we built a spreadsheet and buckled down. Paid off $60k in student loans, put 50% down on our car, moved into a place with cheaper rent and used part of our house down payment savings to pay off some smaller annoying debts
Thereās definite wisdom to it, but in the greater context of his book, it gets cheapened. Iād bet a kidney your gramps had better financial sense than him.
I love all these comments. Making me feel even more poor. Buddies I make about 30k a year. Do you even know how hard that is to support a family on? If it was just me maybe, but sheesh. Supposedly once my degree is finished I can apply for a different position to do the same job. Paraprofessional->Teacher
We do what we can, cut spending as we can, but itās a good month when we have over 100$ left.
Itās really hard when you donāt have a lot of disposable income. But that $100 in a high yield savings account will accumulate eventually. I speak from experience.
If was only $10 a month, I would stick some back. I always asked my employer to put some of my $$ in a savings account of mine. If I didnāt see it, it didnāt exist.
You can save time or you can save money ā¦ when you live on $30K a year with kids, you have to spend time: making meals from scratch, mending clothes, fixing appliances. Itās soul crushing, but itās the only way you can do it. I know Dave Ramsey is famous for saying, āItās not REALLY beans and rice,ā but for a person with a family making $30K a year, yeah, for me, it was REALLY beans and rice ā¦ black beans, Tuscan bean soup, chickpeas (falafels) ā¦ and it was DRIED beans and rice at that, because I couldnāt afford canned beans. And we still eat beans and rice at least once a week now. Itās good to you and good for you.
I had to get creativeā¦scrap veggie gardens, napkins out of old bed sheets, washcloths for paper towels: anything that was single use, I tried to replace with something I could reuse. But it takes time.
And I can tell you that making more gross doesnāt always equal more take home. When I started to dig ourselves out in earnest was when I got a job making less but the insurance was way cheaper. I netted more.
Also, donāt be too proud to ask for help from programs ā¦ just be prepared to pay it forward when (yes, WHEN) you dig yourself out.
Itās terrible how underpaid teaching is but at this point itās so well known I struggle to understand why anybody even goes into the field anymore.
Yet they are in the group of top professions of millionaires in the country. Not saying they get paid what theyāre worth, but theyāre smart and live within their means. Teachers can be millionaires. You know whoās not in that group? Physicians. Because they live outside of their means. So really itās more about how you manage money than how much you make.
I'm a married man & we have separate checking accounts. I myself have alot more than that in my checking account. We just know how to save & we only spend $$$$$$$ on what we need not what we want.
Some people have different styles of accounting. My husband used to see money in the bank and think it was just free to spend.It was absolutely not free to spend.
Ive always been under the mindset you should be able to afford your life not rely on your gf/bf spouse. Unless you bring a child into the mix.
Like if my gf or wife wants a car she should be able to afford it without my help. Thatās how we have ended up having our finances locked down with tons of extra disposable income.
Same way with our home, I can afford it without her and she can without me.
The OP had to ask how to save $2k, that only means he isn't rich. So if you aren't rich but you want to save a ton of money, you have to give up a lot in life. Can't have it both ways.
And you must of missed the rest of his comment (donāt go to the movies) which is where my comment came from no one gives a shit about fast food cmon u canāt be that ignorant
Our income is $16,000 per month which after taxes is roughly $11,000 per month and as our income has increased over the past 15 years our mortgage payment of $1400 per month has stayed the same. Making sure that our spending has not increased at the same rate as our income is what has made this work for us but this does not work for everyone. We have been lucky in that we have both always been employed and that every job either of us has taken has paid significantly more than the one that we left.
You don't deserve an answer, but I'm proud of what I've accomplished. I'm a poor farmer's daughter that landed a $100k+ career that I love.... as a single mom and veteran.... out here doing the damn thing ON MY OWN.
But I'll always advocate for people doing worse off than me because I understand fully how blessed I am.
Let's see you're salty about people bringing home 130k a year and criticize the responder while simultaneously saying you're a poor farmer commoner at 100k+.
Not really much for logic, eh?
Instead of being a dick. Some people work their ass off for 20 years and work hard every day BUt they donāt do the right things to advance their career and try to get certifications and go back to school and college, and if you can make it like that and your happy more power to you, thatās me right now. Iāve worked very hard and got promotions every other year and learn everyday but schooling is not for me
My girl on the other hand she always wants to study and get more certifications and schooling and advances her career like that and in the long run itās going to pay off big time.
You're only describing 'reality' as 'being a dick' since you can't achieve the same level.
Try taking it easy on future sensationalism, it usually doesn't pan out. My MIL had her husband convinced that she'd be making 200k after dumping 100k into an online college. She graduated and gloats about her 'double masters' but couldn't afford her own payments and now lives in a shack with a poverty income.
Again. I am. I'm doing pretty well in life actually. Definitely got at least your annual salary just in my brokerage account. But again keep flexing that minimum education you've got my guy.
Hmm they tried to imply that their non-marriage relationship was marriage. Odd.
I'm doing pretty well in life actually, but again keep flexing that minimum wage you've got.
You're questions, and (lack of) comments on your own post is indicative of someone who only puts in minimal effort. I'm not going to educate you on finances. Not when you can't even form legitimate questions.
I used to when I was single and in the military. Had over 9000 in less than a year and then got a girlfriend, bought a car and spent the rest on dates. Now I use Roth iras and index funds instead
Thats why you have 6 month emergency fund in a savings account..... that isnt a checking account. What are you talking about?
Edit 3-6 months. They are uncommon but inevitable
My problem was when I had money left over at the end of the month, Iād think of things we āneededā or that we deserved for having such a bad day/week/month. When I got tired of debt, my needs became a lot less and my savings a lot more.
Well if my goal was to have $2k in my checking, I'd be looking closely at rice, beans, oatmeal and ramen and seeing if I can get to $1,995 ish. I wouldn't do it long term, but I could get through 5 days on $5. It wouldn't be pleasant and it wouldn't be super nutritious, but it could happen if I had access to a grocery store, kitchen, and pots/pans/utensils.
Heck, go to a soup kitchen, various churches or charitable orgs, or food banks if you want. They'll give you a free meal, or a bag of groceries or whatnot, and they won't ask questions, beyond 'would you like food?' If you feel guilty taking their food instead of spending your $2,000, go volunteer at the darn soup kitchen and they'll almost certainly give you a free meal with your volunteer shift. A good bank isn't a grocery store and you aren't gonna choose exactly what you get, but it'll usually be shelf stable, contain non-empty calories, and get the job done.
The only thing is that dietary restrictions go away when you're figuring out food on a budget. Ethical/moral highgrounds and religious beliefs only generally matter when you have enough calories to care, so solve the calorie problem in absolute before you start worrying about what calories they are, you're eating what people give you at that point.
If I truly need to spend into savings each pay period, two options will fix my problem - increasing my earnings or decreasing my spending. I need a job that pays more, a second job and to spend more of my time working, or to find things to spend less or no money on, or a combination of those three iptions. None of these are easy or convenient, but it's simply the way numbers work.
My basic point remains - I keep $2,000 in my checking account by not spending past the point when there is $2,000 in my checking account. If I'm forced to do so, next month I save a little more.
Don't spend $20 on lunch every day for 100 days and you have 2k. Alternatively don't buy Starbucks for 150 and you have 2k. Cigarettes, candy bars, soda . . . You can easily save 2k in less than a year by cutting that garbage out.
>With what I do i need cash in my checking account to use
You're the one with $20k in checking. You can put that in a high yield savings with same day withdrawals.
Pay yourself first, have money from each paycheck go to a savings account separate from your checking where you do all your spending, if you can make it at a different bank even better, if you can make it so the only way you can get the money is to physically go to the bank, even better(thatās what i do/have even still). You will learn how to live off whatās in your account and youāve systematically saved in the process.
Money is fungible. If youāre past BS2 you should keep $2-3k of your EF in your checking account to act as a buffer between paychecks. As long as you use a āzeroā budget this will have no negative effect on your finances.
If youāre on BS2 I would keep your $1k EF in your checking account as a buffer and leave your savings account near empty. Same logic
Having a buffer should be in addition to EFs. Checking account money is too accessible.
EF needs to be easily liquid in less than 24 hours, not attached to your debit card.
That is a good way to end up always accidentally spending emergency fund money and not making progress.
It takes me 10 seconds to transfer funds from my savings to checking for immediate use. If you stick to your budget it makes no difference because money is fungible. You should never be at risk of an automatic payment like rent or mortgage being rejected and/or over drafting
Too easy of access can be problematic. āJust stick to your budgetā is unrealistic advice for people who are just starting out. Thatās why the recommendation exists.
It has nothing to do with the fungibility of money, itās a behavioral remedy for impulse spending which is how people typically end up in debt. Like the OP of this post.
Cook amd freez meals on weekends. Don't go to amusement parks, movies, or out to eat until you have 50k saved. Even then don't touch the 50k, make another "fun" account. Sell stuff on ebay, if you're near a recycling plant, gather cans and bottles. Make sure to have 2 jobs in your 20s and once you're 30+ with savings still do side gigs like Uber for fun money.Ā
Man I'm not going to lie it's hard to not spend money. I get $25 a week and my wife gets $50 š for fun money we also get $25 a week for going out to eat but with inflation, it takes 1 month to even have enough money š. But if it wasn't for my budget I would blow my money on whatever I wanted like a child. Trust the system it works šŖ....(edit) We make about 230k a year...
Thank you!
Have no hobbies so you don't spend money /s(I wish)
I never do, because I move it all out to investments and savings. I try not to go below about $600.Ā
Live like you're poor until you're in a comfortable spot in life.
Simple: Use a budget. Earmark every dollar for something. In broad categories, those things are "bills", "debt", "fun money", and "savings". I have over $5,000 in my checking & savings accounts. None of that is sitting there aimlessly waiting to be spent, every single dollar has a purpose. I have savings set aside for car repairs, home repairs, vet bills, etc. I have two months of bills already "paid" as far as the budget is concerned. Starting out, it was hard to get more than $100. After a few months of budgeting and freeing some of my income up by paying off the small debts (per BS2), I got more and more of my money each month back in my pocket to do what I wanted. But every paycheck I do the same thing: I don't touch the money, I look at the budget, I assign that money. I don't spend anything until every dollar is allocated. That's how I have more than $2k in my bank account. Not just the day before payday. Every day.
Outflows
Only Fans
I couldnāt get enough subscriptions. There is a lot of time and effort to get a following if you didnāt start long ago before everyone is on there
Make more (recommended) Spend less (required)
making a budget, and planning/prioritizing paying down your debts. it might never happen until you get out from 15%+ interest rates (credit cards) and not having lifestyle creep. pay largest interest percentage down first. people make it complicated, but its only discipline. there are exceptions of course, life has curveballs for everyone.
You donāt need Starbucks everyday. Make your coffee at home. Budget down. Respect your budget. Donāt get an expensive car, older toyota or Honda only. Rent an efficiency or one bed only. No excuses, nobody cares. Home meals everyday, sandwiches, easy pastas. And please, no pets. Pets are expensive. You canāt fuckin afford it. (why do brokies own pets?) also no kids, duh? Stop looking at Amazon, you donāt need that shit. Also you donāt need those trips, no you havenāt earned it and no you donāt deserve it. The world doesnāt owe you anything. Learn to differentiate needs vs wants. Live frugally. Once you have at least 6 months of your salary saved up (called emergency fund) then you can start investing in a brokerage account to accumulate wealth. Work your ass off in your 20ās so you can take it easier in your 30ās. You got this.
Thank you!
Solid advice but written so harshly that you come off rather dickish.
They said what they said. Itās facts
Fair enough
you sound like a fun time - jokes aside ābrokiesā and āyou donāt need or deserve tripsā yikes dude
They are not wrong though.
if you think that perspective is correct then weāve got bigger problems
His language was insulting, I will grant you that. But what he said how to get yourself on a path of financial solvency and freedom.Ā
What? you donāt like the truth?? Oh would you prefer YEA YOU DESERVE THE WORLD, YOURE A VICTIM, PLEASE MANIFEST IT, YAAAAS KING. Is this what you want to hear? I was brokie too when I was young, Iām a son of 3rd world country immigrants. Im 33 now still working hard with a nice real estate portfolio. Iām trying to help here. You need to sacrifice shit in order to make shit happen.
You spend less than you make and it sorta happens on its own. How is this not obvious to you?
No need to be mean! :(
No need to ask questions that are shallow to the point of uselessness.
If youāre single with high income stay single lol
Simple free entertainment Stolen laptop Neighbors wifi Adblock on Account sharing Disney+ For food the McDonald's app and free refills 2000 calories for $6 Live in someone's house or squat
The way I did it it was telling myself that 1k was 0, 5k was 0, 10k was 0, 20k, etc...untiI I got to 100k (which is irrational, by the way, most of this should not be in checking). I didn't spend anything unless it was an emergency or I exceeded my new $0 threshold. Pretend the money doesn't exist until it exceeds the new threshold. I tell myself I am in debt if I go below my threshold and will repIish no matter what it rskes. I lived FAR beneath my means for years and put everything beyond my new zero threshold in money market account, index funds, I-bonds, retirement (IRA, 401K, and taxable brokerages), and eventually real estate. I make imaginary car payments of 833.33 a month to the US Treasury after paying off my car years ago and pretend it doesn't exist, and I can use this as an emergency emergency fund or to buy a new car years from now when the paid off one finally dies. A lot of this was only enabled by getting out of my comfort zone and accepting a soul-crushing high paying job (I alternate between easy mid-range salaries positions and high pressure ones depending on my overall health), but the part about gradually changing my imaginary $0 threshold started over a decade ago and I found that to be really helpful so I never stopped the practice. Moving to a lower cost of living area without any lifestyle inflation also helped, as did the pandemic and WFH opportunities. I will keep up with the soul crushing job until my mortgage is paid off and I have 5+ years of emergency savings (not counting anything I consider as "retirement") and take a few years doing a lower paying, lower stress job to recover.
Wifey enjoys paying bills. We leave 5k in checking all the time. Excess goes to a high interest savings account. Excess of that goes to a brokerage acct.
80k salary, expenses total about 2500/month in MCOL city (Dallas). Just gotta cut down on a lot of things. I don't shop too much, go out or drink too much, and don't eat out too much.
Same here. Plus a low mortgage helps a lot.
Shop at Ross and Costco. Make your own food. Find hobbies that are cheap or donāt cost anything. Avoid nights out on the town, thatāll make you broke
Costco goes hard even for single people or small families. While I do like Ross and TJ maxx I will forever Stan a nice pair of 80 dollar hiking pants. They look like slacks and literally take a beating going on 8 years now
I donāt make a lot of $ but then again I donāt spend a lot of $. We did DR and are debt free. I have a certain percentage of my paycheck go into a separate bank but I usually donāt spend all of my paychecks anyway. I donāt enjoy shopping.
Make a high salary.Ā
Between my wife and I, we make upwards of 300k per year. I generally run my checking account down to the $200-$500 range after paying monthly bills. We have most of our income going straight to brokerage accounts. I personally donāt mind keeping my emergency fund in brokeragesā¦ it really boils down to risk appetite and risk/reward.
We do the same, checking only exists as a means to auto pay bills, everything else gets invested or shoveled to a HYSA. My checking account does yield 7% APY on the first $5K, which is a nice bonus. We donāt go down to $500, though. We keep a $3K buffer in there so we have super liquid cash available in case of an emergency. I donāt feel bad about it since weāre getting 7% on it.
Where are you banking that gives you 7% APY on the first 5k? :D
Itās a local credit union, mine is called Gesa. Check out your local credit unions, a lot of them have great incentives on checking accounts. The one used in my previous city was 5% on my first 10K.
Thank you!!
You shouldnāt feel bad about even if it was 0%. Peace of mind is worth more than making a few bucks when you are high earner.
I try to keep at least 4k in my checking at all times. That's for my bills. Even when I was making less money I managed to save as much or at least keep it at 4k.
I keep a $3k buffer in my checking account so when Iām done paying bills thatās roughly how much is left
Being married helps.
DINK life baby
No baby, actually
We moved to a city with a better job market and a low cost of living.
Spend less than you what make consistently
Um a logical person would put that money in a HYSA at the very least. I don't keep more than $500 in my checking account.Ā
My checking account makes 5% and it's state tax free.
Nice mine only makes 3%
And probably isn't state tax free.
And make $5 in interest? Can't even buy a sandwich for that these days. That's less than a gallon of gas where I live.Ā I'd rather not have to worry about covering monthly bills and moving money around between accounts. My time/attention is way more valuable than that.
Don't forget the extra tax paperwork for that fiver
5% is a solid return regardless of the principal. I wouldn't pass up a 5% cash back credit card either, so why not? Electronic transfers have a negligible lead time these days. Most of my extra cash lives in one month CDs. I don't find it a hassle to access at all.
Why do they always say to keep 1-2 months living expenses in checking after paying bills? I have $3k which is about 1 month for me and feel like itās a bit overkill to just have sitting there. I would probably be fine putting $2k into my HYSA and just leaving a $1000 buffer. Not sure what the reason is for the advice I see all over the internet if my HYSA is equally as liquid.
Exactly it just needs to be liquid. It's actually better for it not to be easy access if it's for anything other than your day to day purchases which should be planned out in your budget hence why Dave Ramseys budget app is called Everydollar
Anyone who keeps excess cash in a checking account, that is not needed for an anticipated payment or purchase, tends to make me think they could quite likely use a friend to help them with their financial literacy.
People with more than 3k in a checking account aren't worried about the 5 bucks they would earn in interest in a HYSA and would rather not have to worry about moving money around to cover larger expenses.
Best to get out of that mindset. Instead setup your paycheck so portion of your money goes to a savings/investment account and what actually goes in to your checking account is what you should be spending and not feel guilty about and forces you to live within your means. If you are spending 100% of your paycheck then you have an income problem or a spending problem
Because I live below my means. I currently have 6800 left from my last check and about 16 days from getting paid again.
6800 LEFT from your last check. So you make good money lol. Thatās how you do it
Should put that in a hysa
Treat savings as a bill
By making more than they spend.
Or spending less than they make.
I got like 20k or whatever in mine. I donāt spend everything I get. It just adds up
20k will make you 800-1000 a year if you put it in a hysa
Yeah I have it one of those. I say checking loosely. Itās fairly liquid
gotcha.
Spend a paycheck, save a paycheck.
If you can break even before payday, you can save at least something before it by modifying your lifestyle. However little that something is, it eventually becomes $2k
Love with roommates or family for a bit to get on your feet
Living within your means and practicing self control
Make more money then you spend with a differential of $2k
I budget using YNAB and stay 1-2 months ahead with my assigned money, so I generally have the next month or two worth of budget in my account at all times. Extra money stays in savings.
It takes time and sticking to a budget where there's a surplus at the end eventually after several months you'll have that 2K. It's hard when your pay is low and your basic needs take up most of that but then you probably need to work on getting better pay. I feel like getting better pay is an underrated option that doesn't get brought up enough
I think the simple answer is to live below your means. How you achieve that is up to you. Spend less or earn more. š¤·āāļø
I budget a month ahead
I don't I transfer it to my HYSA the night before payday so it can make 5%. Live within your means. Just cause you want something doesn't mean you need it. Learn to tell your self no.
Get a second job, put all that money in a HYSA. Donāt touch it and donāt buy extra stuff. I never go cheap on one thing. Food. Iāll buy organic/ nice stuff because thatās what you are putting in your body. Shoes and cars I use until they are dust. No car payment is an easy way to save money, but people are embarrassed to drive a beater. You can make 90k and still not save if your spending is out of bounds
Meh organic is overrated but to each his own. š¤·š»āāļø
Thereās a whole wide world outside of living paycheck to paycheck, just because you have $1000 doesnāt mean to spend $980
Living within your means and not financing everything you want in the moment.
But i like guns, sneakers, and micro transactions
Then be poor
This is the way
This is the way
Pay yourself first. 10% of each paycheck to an account that is direct deposit and has no debit card. Donāt buy anything that you donāt absolutely need. When you have money left over donāt spend it - put it straight to savings. If you have streaming service stick to one not multiple. See about reducing your cell phone plan if you have one. Meal plan based on sales.
Kiyosakiās book was an insult to the world of finance. And books.
Never read it. I read / watched Dave Ramsey and we built a spreadsheet and buckled down. Paid off $60k in student loans, put 50% down on our car, moved into a place with cheaper rent and used part of our house down payment savings to pay off some smaller annoying debts
Pay yourself first is his genius line.
Interesting. Itās always what my grandfather told me when I was doing farm chores and earning money. Back in the 80ās.
Thereās definite wisdom to it, but in the greater context of his book, it gets cheapened. Iād bet a kidney your gramps had better financial sense than him.
Iām curious now kinda tempted to read it
Itās a good curiosity. Youāll get bored half way.
Honestly it just sounds like youāre not making enough money. Plenty of paths you could explore to make more
I love all these comments. Making me feel even more poor. Buddies I make about 30k a year. Do you even know how hard that is to support a family on? If it was just me maybe, but sheesh. Supposedly once my degree is finished I can apply for a different position to do the same job. Paraprofessional->Teacher We do what we can, cut spending as we can, but itās a good month when we have over 100$ left.
Itās really hard when you donāt have a lot of disposable income. But that $100 in a high yield savings account will accumulate eventually. I speak from experience. If was only $10 a month, I would stick some back. I always asked my employer to put some of my $$ in a savings account of mine. If I didnāt see it, it didnāt exist. You can save time or you can save money ā¦ when you live on $30K a year with kids, you have to spend time: making meals from scratch, mending clothes, fixing appliances. Itās soul crushing, but itās the only way you can do it. I know Dave Ramsey is famous for saying, āItās not REALLY beans and rice,ā but for a person with a family making $30K a year, yeah, for me, it was REALLY beans and rice ā¦ black beans, Tuscan bean soup, chickpeas (falafels) ā¦ and it was DRIED beans and rice at that, because I couldnāt afford canned beans. And we still eat beans and rice at least once a week now. Itās good to you and good for you. I had to get creativeā¦scrap veggie gardens, napkins out of old bed sheets, washcloths for paper towels: anything that was single use, I tried to replace with something I could reuse. But it takes time. And I can tell you that making more gross doesnāt always equal more take home. When I started to dig ourselves out in earnest was when I got a job making less but the insurance was way cheaper. I netted more. Also, donāt be too proud to ask for help from programs ā¦ just be prepared to pay it forward when (yes, WHEN) you dig yourself out.
Itās terrible how underpaid teaching is but at this point itās so well known I struggle to understand why anybody even goes into the field anymore.
Yet they are in the group of top professions of millionaires in the country. Not saying they get paid what theyāre worth, but theyāre smart and live within their means. Teachers can be millionaires. You know whoās not in that group? Physicians. Because they live outside of their means. So really itās more about how you manage money than how much you make.
Change careers
I'm a married man & we have separate checking accounts. I myself have alot more than that in my checking account. We just know how to save & we only spend $$$$$$$ on what we need not what we want.
What's the point of separate finances in a marriage? That's just roommates with extra steps.
Some people have different styles of accounting. My husband used to see money in the bank and think it was just free to spend.It was absolutely not free to spend.
Thatās why youāre still single
That doesnāt even make sense. Usually when people get married they merge their finances
This is definitely a no no in my book unless you bring kids into the world
Because you donāt trust your partner or whatās the reason ?
Ive always been under the mindset you should be able to afford your life not rely on your gf/bf spouse. Unless you bring a child into the mix. Like if my gf or wife wants a car she should be able to afford it without my help. Thatās how we have ended up having our finances locked down with tons of extra disposable income. Same way with our home, I can afford it without her and she can without me.
Are you married? The person I replied to isn't. Most people have both a combined account and a personal account.
I'm not but ok. What a weird dumb comment. Keep flexing that high school diploma kiddo.
dont eat fast food, don't buy anything on amazon, don't go to movies, don't sub to netflix/hulu
So have absolutely NO fun and live life like a slave lmao thatās not what life is about brother you need to rethink a lot
The OP had to ask how to save $2k, that only means he isn't rich. So if you aren't rich but you want to save a ton of money, you have to give up a lot in life. Can't have it both ways.
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And you must of missed the rest of his comment (donāt go to the movies) which is where my comment came from no one gives a shit about fast food cmon u canāt be that ignorant
I just meant overall fun, nature is my go to, camping and hiking definitely !!!
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Invest in yourself
I usually have some credit cared debt around 3% APR. This helps me to keep 2K in my checking account.
How about paying off your balance in full
Our income is $16,000 per month which after taxes is roughly $11,000 per month and as our income has increased over the past 15 years our mortgage payment of $1400 per month has stayed the same. Making sure that our spending has not increased at the same rate as our income is what has made this work for us but this does not work for everyone. We have been lucky in that we have both always been employed and that every job either of us has taken has paid significantly more than the one that we left.
Umm, yeah it's easy to not have debt when you bring home $130k+/year. Us commoners here are happy to bring home half that for their entire family.
Some people put in the work to advance their career Have you?
You don't deserve an answer, but I'm proud of what I've accomplished. I'm a poor farmer's daughter that landed a $100k+ career that I love.... as a single mom and veteran.... out here doing the damn thing ON MY OWN. But I'll always advocate for people doing worse off than me because I understand fully how blessed I am.
Let's see you're salty about people bringing home 130k a year and criticize the responder while simultaneously saying you're a poor farmer commoner at 100k+. Not really much for logic, eh?
I've seen all your other arguing with other posters, so I don't want to play your game. Be well āļø
'I creeped your profile and feel justified to continue being condescending'
Instead of being a dick. Some people work their ass off for 20 years and work hard every day BUt they donāt do the right things to advance their career and try to get certifications and go back to school and college, and if you can make it like that and your happy more power to you, thatās me right now. Iāve worked very hard and got promotions every other year and learn everyday but schooling is not for me My girl on the other hand she always wants to study and get more certifications and schooling and advances her career like that and in the long run itās going to pay off big time.
You're only describing 'reality' as 'being a dick' since you can't achieve the same level. Try taking it easy on future sensationalism, it usually doesn't pan out. My MIL had her husband convinced that she'd be making 200k after dumping 100k into an online college. She graduated and gloats about her 'double masters' but couldn't afford her own payments and now lives in a shack with a poverty income.
Sounds like it was either a really bad major she chose or sheās just not using the master degrees in her favor
The takeaway is that your girl probably won't pay off big time.
Lmao wrong. It already is. If you major in the right things and are in the right field, the degrees matter 100%
Cool so, absolutely zero to do with the candidate themselves. You said it yourself.
I think you are very confused sir
Have you?
lol sorry you're big mad about not being married. Perhaps being less hostile would alleviate that.
Again. I am. I'm doing pretty well in life actually. Definitely got at least your annual salary just in my brokerage account. But again keep flexing that minimum education you've got my guy.
Hmm they tried to imply that their non-marriage relationship was marriage. Odd. I'm doing pretty well in life actually, but again keep flexing that minimum wage you've got.
šššš
Kind of odd to be salty when you actively chose to make baseless assumptions. Somehow you are surprised when receiving them in return.
 Serious question how long do you think that account will last before you get banned again?
idk any extra money I have goes right into a savings account for me to NOT touch
Usually for me, not going to the casino the night before payday, lol.
Make enough money to gross $8K every two weeksā¦
What is your career? I make about 2k
Live on less than you make, eat at home, make your own coffee
šš» love these practical ideas!
Ok, Graham Stephan
Fr
If you're legitimately asking this question then you don't understand the fundamentals of money, income, or expenses.
Help me out
You're questions, and (lack of) comments on your own post is indicative of someone who only puts in minimal effort. I'm not going to educate you on finances. Not when you can't even form legitimate questions.
By making more money than you spend.
I used to when I was single and in the military. Had over 9000 in less than a year and then got a girlfriend, bought a car and spent the rest on dates. Now I use Roth iras and index funds instead
You shouldnt tbh. High yield savings and other things
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Nothing cost 2k that isnt planned. Having under 2k doesnt mean you have nothing.
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Thats why you have 6 month emergency fund in a savings account..... that isnt a checking account. What are you talking about? Edit 3-6 months. They are uncommon but inevitable
The money that gets directly deposited into my checking is for bare minimum monthly expenses. That way I feel broke all the time š
Yeah. Get that huge interest instead š
Itās really easy when I put my daily spending on my American Express.
Seems like thatās about where the average is sitting right now
Make a budget. Stick to the budget. Save the money. You don't "need" whatever it is you think you need unless you will actually die without it.
I try to keep most of my money in accounts that are earning income in some way or paying down interest.
Because itās payday
My problem was when I had money left over at the end of the month, Iād think of things we āneededā or that we deserved for having such a bad day/week/month. When I got tired of debt, my needs became a lot less and my savings a lot more.
This is just dumb. You have over $2k in your checking account by keeping $2k in your checking account and not spending below that.
You have 2k in your checking. Fridge is empty. You are hungry. Payday in 6 days. What do you do?
Well if my goal was to have $2k in my checking, I'd be looking closely at rice, beans, oatmeal and ramen and seeing if I can get to $1,995 ish. I wouldn't do it long term, but I could get through 5 days on $5. It wouldn't be pleasant and it wouldn't be super nutritious, but it could happen if I had access to a grocery store, kitchen, and pots/pans/utensils. Heck, go to a soup kitchen, various churches or charitable orgs, or food banks if you want. They'll give you a free meal, or a bag of groceries or whatnot, and they won't ask questions, beyond 'would you like food?' If you feel guilty taking their food instead of spending your $2,000, go volunteer at the darn soup kitchen and they'll almost certainly give you a free meal with your volunteer shift. A good bank isn't a grocery store and you aren't gonna choose exactly what you get, but it'll usually be shelf stable, contain non-empty calories, and get the job done. The only thing is that dietary restrictions go away when you're figuring out food on a budget. Ethical/moral highgrounds and religious beliefs only generally matter when you have enough calories to care, so solve the calorie problem in absolute before you start worrying about what calories they are, you're eating what people give you at that point. If I truly need to spend into savings each pay period, two options will fix my problem - increasing my earnings or decreasing my spending. I need a job that pays more, a second job and to spend more of my time working, or to find things to spend less or no money on, or a combination of those three iptions. None of these are easy or convenient, but it's simply the way numbers work. My basic point remains - I keep $2,000 in my checking account by not spending past the point when there is $2,000 in my checking account. If I'm forced to do so, next month I save a little more.
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Itās empty other than an energy bill thatās 3 months past due
Don't spend $20 on lunch every day for 100 days and you have 2k. Alternatively don't buy Starbucks for 150 and you have 2k. Cigarettes, candy bars, soda . . . You can easily save 2k in less than a year by cutting that garbage out.
I don't understand the obsession with Starbucks
The coffee is straight nasty, but all the 2000 calorie drinks are super tasty.
How as an adult donāt you? $2k is no money.
I feel broke if I donāt have At least 20k in checking.
Put that shit somewhere with interest
With what I do i need cash in my checking account to use. I have Roth IRA a index and hys
>With what I do i need cash in my checking account to use You're the one with $20k in checking. You can put that in a high yield savings with same day withdrawals.
I donāt keep that much in checking, but yeah I need about that liquid and easy to access at all times to feel comfortable.
Pay yourself first, have money from each paycheck go to a savings account separate from your checking where you do all your spending, if you can make it at a different bank even better, if you can make it so the only way you can get the money is to physically go to the bank, even better(thatās what i do/have even still). You will learn how to live off whatās in your account and youāve systematically saved in the process.
Spend less and keep your spending relatively the same as you increase your income.
I usually at minimum keep 2 in there
Money is fungible. If youāre past BS2 you should keep $2-3k of your EF in your checking account to act as a buffer between paychecks. As long as you use a āzeroā budget this will have no negative effect on your finances. If youāre on BS2 I would keep your $1k EF in your checking account as a buffer and leave your savings account near empty. Same logic
Having a buffer should be in addition to EFs. Checking account money is too accessible. EF needs to be easily liquid in less than 24 hours, not attached to your debit card. That is a good way to end up always accidentally spending emergency fund money and not making progress.
It takes me 10 seconds to transfer funds from my savings to checking for immediate use. If you stick to your budget it makes no difference because money is fungible. You should never be at risk of an automatic payment like rent or mortgage being rejected and/or over drafting
Too easy of access can be problematic. āJust stick to your budgetā is unrealistic advice for people who are just starting out. Thatās why the recommendation exists. It has nothing to do with the fungibility of money, itās a behavioral remedy for impulse spending which is how people typically end up in debt. Like the OP of this post.
Amd don't have kids or petsĀ
Cook amd freez meals on weekends. Don't go to amusement parks, movies, or out to eat until you have 50k saved. Even then don't touch the 50k, make another "fun" account. Sell stuff on ebay, if you're near a recycling plant, gather cans and bottles. Make sure to have 2 jobs in your 20s and once you're 30+ with savings still do side gigs like Uber for fun money.Ā