How (and why) to Ramble on your goat sideways
01-28-2011, 06:34 AM
#6133
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Location: Central Florida
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But then I have to look at that seemingly unimportant extra $50 a check, and be tempted to just spend it, because it's "only $50" and not worth saving. When Uncle Sam holds it, I forget it exists and I am not tempted by it. Then at the end of the year, it's like a surprise to see the money I have let him hold on to for me all year.
If you are really so undisciplined that you cannot save any money on your own, consider opening a Roth IRA. Split your paycheck direct deposit so that a small portion goes either in to a second checking account or a savings account. If you are really weak-willed, set that account up at a credit union or something that you don't have a debit card for and don't visit regularly.
Then, you could open a Roth IRA and set up monthly contributions, drafted directly from that new account.
I like this strategy better than using a 401k for younger and/or lower-income earners because there is more accessibility to the Roth in an emergency.
* Please note the above is just an example of one general savings/investment strategy. Please speak with a financial or tax advisor about your specific circumstances for more detail. PM me for more information (please include your state of residence if you do so).
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01-28-2011, 07:34 AM
#6135
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Join Date: Feb 2008
Location: Birmingham Alabama
Posts: 7,930
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And what happens with the money you get from your tax overpayment? Does it get saved? No? Then why let the government hold your money? Just because you'd rather have a lump sum to spend than small amounts?
If you are really so undisciplined that you cannot save any money on your own, consider opening a Roth IRA. Split your paycheck direct deposit so that a small portion goes either in to a second checking account or a savings account. If you are really weak-willed, set that account up at a credit union or something that you don't have a debit card for and don't visit regularly.
Then, you could open a Roth IRA and set up monthly contributions, drafted directly from that new account.
I like this strategy better than using a 401k for younger and/or lower-income earners because there is more accessibility to the Roth in an emergency.
* Please note the above is just an example of one general savings/investment strategy. Please speak with a financial or tax advisor about your specific circumstances for more detail. PM me for more information (please include your state of residence if you do so).
If you are really so undisciplined that you cannot save any money on your own, consider opening a Roth IRA. Split your paycheck direct deposit so that a small portion goes either in to a second checking account or a savings account. If you are really weak-willed, set that account up at a credit union or something that you don't have a debit card for and don't visit regularly.
Then, you could open a Roth IRA and set up monthly contributions, drafted directly from that new account.
I like this strategy better than using a 401k for younger and/or lower-income earners because there is more accessibility to the Roth in an emergency.
* Please note the above is just an example of one general savings/investment strategy. Please speak with a financial or tax advisor about your specific circumstances for more detail. PM me for more information (please include your state of residence if you do so).
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01-28-2011, 09:45 AM
#6136
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Join Date: Sep 2008
Location: Central Florida
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You are going the whole year without this money, right? That seems to me that you are able to live without it. That means you make enough to be able to save.
Most of the "millionaires next door" are self-made and did it by living well within their means and saving. In addition, "it takes money to make money." If you ever decide to start a new venture, invest in a new business, etc, you will need some working capital.
Or, if you want to retire before 70, you will need to have saved your own money. Time value of money and compounding (not to mention tax free growth via a Roth) can have HUGE impacts on the total over an extended time horizon.
Short-term sacrifice for long-term gain.
Just sayin'.
Now back to your regularly scheduled low-brow humor. 
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01-28-2011, 10:04 AM
#6138
Boost Pope
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Join Date: Sep 2005
Location: Chicago. (The less-murder part.)
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What Jack said. Even if all you can possibly save w/o starving is literally just a grand a year, get in the habit of doing it. Otherwise you never will, even when you're making $80-$100k a year. I've seen this happen to friends of mine.
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01-28-2011, 10:10 AM
#6139
$1,000.00.....
There is technically 6 figures there....
I know this year will be anyther tight year for my wallet...but next year...of yeah...it will be a good year. I miss the 2-year period I had a few years ago where I was living in a cheap apartment, had a cheap car payment/insurance/ a great 401K and was dumping $1k ever two weeks into my ING account that was at 5%. Life was good for awhile...paid off a massive amount of debt with that savings money. Then came a new house, a new job and a new car lol.
lol...I just saw I was called an elitest ******* by someone with millionare parents (aka spoiled rich kid) and never has to work a day in his life....oh the irony. Yup..I'm such an elitest...I never had to sell prized personal items to put food in my mouth, I've never had to remove the passenger seat of my car because it was my mobile hotel while I had no place to live for weeks at a time...never had to crash from couch to couch or worry about where I could find somewhere to wash my clothes...never had to think that Ramen noodles were livin' it up or think what would happen if I got sick because I had no medical insurance. LoL...people sometimes. Sorry for the rant.
There is technically 6 figures there....
I know this year will be anyther tight year for my wallet...but next year...of yeah...it will be a good year. I miss the 2-year period I had a few years ago where I was living in a cheap apartment, had a cheap car payment/insurance/ a great 401K and was dumping $1k ever two weeks into my ING account that was at 5%. Life was good for awhile...paid off a massive amount of debt with that savings money. Then came a new house, a new job and a new car lol.
lol...I just saw I was called an elitest ******* by someone with millionare parents (aka spoiled rich kid) and never has to work a day in his life....oh the irony. Yup..I'm such an elitest...I never had to sell prized personal items to put food in my mouth, I've never had to remove the passenger seat of my car because it was my mobile hotel while I had no place to live for weeks at a time...never had to crash from couch to couch or worry about where I could find somewhere to wash my clothes...never had to think that Ramen noodles were livin' it up or think what would happen if I got sick because I had no medical insurance. LoL...people sometimes. Sorry for the rant.
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