Method of Saving Money: Good idea?

[::::BASSIST::::]

[gkbass13]

If you can increase any of those amounts, I would do so. But it isn't a terrible start if you're new to saving or investing.

[nortonrider]

or you could just deposit $26.50 a week into the saving account.
at the end of the year, you would still end up with $1378.
(probably a few cents more when you calculate interest you will earn)

[MatticusMania]

Sounds great in theory, but no way would I be able to put aside $202 during the month of December.

[MatticusMania]

Originally Posted by nortonrider

or you could just deposit $26.50 a week into the saving account.
at the end of the year, you would still end up with $1378.
(probably a few cents more when you calculate interest you will earn)

At an $25 a week one would end up with $1300 by the years end. That seems much more reasonable to me.

[GregC]

If you find you can save $52 a week by the end of the year and keep going up from there, that would be great. But what you have there is a decent start, IMO.

[::::BASSIST::::]

I think I am going to just save $100 per paycheque so that would give me $2400 a year. $12000 after 5 years and $60,000 after 25 years. I am 40 yrs old and no savings for retirement. This isn't much but at least its a start.

[Lonesomedave]

you guys think small...i like my idea better.

if you save one penny on week one, double it on week two, double that on week three...and so on.

now that's the way to go!

by week 10 you would be saving 512 pennies.

by week 20 you would saving 534,288.

and, (i figure this will be enough)...by week 30 you will put in 536,870,912 pennies

hell, your deposit on week thirty alone is almost 5.4 million, and i figure with all the previous deposits, you will have saved almost 10 million dollars...you could retire on that.

that's my new years resolution, to do just that...i'll tell you guys how it works out.

[tplyons]

When I do my weekly grocery shopping I take an extra $20 out. I put $20 in a box each week and have $1,000 each year.

I also keep enough in my weekly paycheck to be 1/3 of my monthly bills. Four paychecks a week, I cover the bills plus another couple hundred for the unforeseen stuff. Everything else is dumped into savings.

But good to see you guys are saving!

[MatticusMania]

Originally Posted by tplyons

I put $20 in a box each week and have $1,000 each year.

Where's the extra $40 go?

[DerHoggz]

Originally Posted by MatticusMania

Where's the extra $40 go?

Box gremlins of course.

[fdeck]

With any savings method, the trick is self discipline. Folks look at their financial future and say: OMG, I have to save $100/week, where am I going to come up with that money? So, many of the methods people suggest, are partly psychological. For instance with the OP's method, all's you have to do is shave a dollar off your expenses every week, so it doesn't seem quite so impossible.

[Loel]

Originally Posted by ::::BASSIST::::

I think I am going to just save $100 per paycheque so that would give me $2400 a year. $12000 after 5 years and $60,000 after 25 years. I am 40 yrs old and no savings for retirement. This isn't much but at least its a start.

Yes but do it in the form of a RRSP/ you also benefit
interest plus tax savings..

[giacomini]

I'll do it, but instead of weeks I'll increase 1 per day. Let's see how it gets by the end of february...

[iamlowsound]

I have my budget figured out to the dollar, I added a little slush to it and everything extra goes directly into my savings without ever hitting my bank account.

lowsound

[tplyons]

Originally Posted by MatticusMania

Where's the extra $40 go?

It's an expensive box...

In reality, I start at New Years and by the time Christmas rolls around I'm able to do all my shopping without touching the bank accounts, and then plan a small vacation.

[MatticusMania]

Originally Posted by DerHoggz

Box gremlins of course.

Ah, like the Underpants Gnomes, only smarter. They go straight for pilfering cash, instead of trying to profit from online Underpants sales.

[fraublugher]

Underpants gnome economics only works in Asia.

[Jared Lash]

It's definitely an interesting approach to saving money and is a nice way for someone who hasn't really saved to start that process because:

(1) it makes it a game/contest which holds some appeal
and
(2) it gradually fades in the savings so it's an easier approach for someone not used to budgeting for the future.

But in general I think a consistent approach of saving a consistent amount per paycheck (with allowances for things like Christmas) makes the most sense.

But by all means, use it as an approach to start saving money because it's a valuable practice however you find to do it.

[Indiana Mike]

I have direct deposit .

I send 10% of my gross to one bank ,,,that I have no ATM card for.

The bank where the rest of it goes I save another $75 a week that is automatically moved to a savings account.

It was hard at first but I just treated it as a pay cut . I learned to live on less and adjusted.

I have to dip in for emergencies such as appliances or car breakdown . Its really nice paying cash and remaining consumer credit free.

I have a mortgage and a very small car payment . That's it . The car payment came from buying myself a newer car ,my oldest needed a car so instead of buying her one I gave her mine, that was paid off ,and bought myself something nicer.

Good luck
.

Do it ,,,,when you get a good sum of cash you will never need credit again.