20-Somethings - Money issues




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Happy Penguin
04-13-2008, 10:58 PM
So after reading the post i did called "the wedding" your prob going to think im crazy but here it goes. Last thursday driving home my bf says babe we need to sit down and talk and the first thing that ran through my mind was fear :( well he assured me it was nothing to be scared about and started telling me how much he loves me and he wants to see what we both do about our fianances (prob spelled it wrong) so we can start saving up because he wants us to move in together when we turn 22 ( i will be 20 in april and he will be 21 in oct) well we have been saying for a while we would love to live together and everything but i never thought he meant it. well you can imagine i was super happy.so now we need to start saving money because theirs going to be one year the last year of my program at school i cant work, well i can but they recommend you dont because it is very over whemling. i have friends who worked nights but it was super hard for them to study keep up with their work and stay healthy because they were sleep deprived so he wants to have enough money saved so that when that year comes we can still live comfortably and that i dont have to work even though i would want to because he would still be in school and working and i dont want him to carry all the burden. well one idea i came up with was with each paycheck we get we each take out what we feel we can do without that paycheck because his check is never the same amount so we cant set a definite amount to take out. so we each take out what we can afford n place in a saving account so we can start saving up. but what i was wondering was if you girls had any other ideas of what we can do


Azure
04-13-2008, 11:41 PM
I think that planning and saving for any future is an excellent plan. The one thing I would suggest is that you put this saved money in seperate accounts, under your individual names. I would not suggest that you both put the money into a joint account. No matter how in love you are now, or how sure you are about him...sometimes things happen. And if for any reason the two of you break up, there could be contention about how much belongs to whom. My sister was dating a guy for a little over 2 years, he moved into her apartment and they had a joint account for apartment expenses. When they broke up, he cleaned out the account--their whole breakup wasn't pretty.

I don't want to put a damper on how you feel--it's pretty exciting. My boyfriend of 2.5 years and I are going to be getting an apartment together this summer (I'm 23, he's 24), and I'm very excited about it. But, it's a pretty big step--there are leases involved, and once we start buying things for the apartment, getting jobs in the same area (we live 2 hours from one another now--he's already go a very good job, I'm graduating from college in May)...it's a lot of commitment.

So, proceed with caution, but there's nothing wrong at ALL with putting money away for the future.

Its Courtney
04-13-2008, 11:53 PM
Kudos for you to getting started saving up!! That's a big step, and I think it's great that you two are taking such a mature approach to it. I think instead of taking out a set amount out of each paycheck to set aside, put a percentage of it away. Also, how about setting a weekly or monthly budget? Put aside a percentage of ya'lls paychecks and set a spending budget for the month. If you're under budget, put THAT in your savings as well. Then start over for the next month...you may save up more than you think!

Also, try cleaning out your closets. Anything ya'll have duplicates of, get rid of on Ebay. Sell old clothes or stuff that you don't need anymore that you think someone else can make good use out of. Shoes, bags, clothes, appliances, odds and ends, etc...that's a quick way to make some cash! And whatever you make from that, put toward your living-together fund!

Best of luck hun! I have my fingers crossed! :)


blondebritbrat17
04-13-2008, 11:58 PM
Well congratulations on soon taking the next step in your relationship! If your school recommends you not work I would take their advice to be honest. I know it is difficult, I myself was considering doing the nursing program-they recommend you not work as well and now can't do the program due to the fact my hearing loss is too severe to be able to use a stethscope properly- I finally got the opportunity to test out stethscopes on people which that was going to be the tricky part for me and it was on the fence. But I was prepared to not work and am currently not working right now in order to prepare us for the loss of my puny salary working retail and get us used to only one salary. It has been difficult. I'm now considering getting a job too again myself since I won't be doing the program. You can carry the burden in other ways like doing the laundry, cooking, and doing all you can to save money which is what I do now. We have stopped eating out so much, I really plan ahead if we do eat out which is about once or twice a month now. Also we do not really buy tv dinners and preprepared food, I basically cook everything from scratch and this way I can control my sodium since I tend to blimp out if I have a lot of preservatives and salt. I clip coupons and I've gotten some really good coupons for restaurants Like Olive Garden, Bennigan's which I never knew was in the Sunday newspaper go figure :-) so we do that too and use those. If you're a reader like me where I was spending about 100 dollars a month at Barnes and Nobles for pleasure reading go to a used bookstore instead or even better go to the public library. Same for movies, we used to buy a movie once a week at the Walmart and typically we would spend about $20 dollars on a movie, we cut that out and started renting from Blockbuster and also most public libraries have a selection of movies too which mine has a huge selection. We also do not go to the movie theater any more, we either wait until it's out to rent or go to the Dollar Movie Theater instead if it's just a movie we CANNOT WAIT to see lol. Just little things like that can add up. I would estimate we save about 300 for sure to 500 a month just doing all those things, mostly just cutting out eating out did the big savings for us. I'm about to start withdrawing $20 a week from the ATM to start up a savings account then when I have $300 I'm going to open up a savings account for me and my husband and set up online banking if it's free for us and have them withdraw 25 dollars per paycheck to be put into our savings. Little amounts can do a lot. My husband's paycheck is never the same monthly too so I know it is hard and can vary from 100 dollars to 800 dollars less or more monthly so we really do budget and whenever he makes more than what our bills cost we don't spend that money and we keep it sitting there for whenever we might possibly need it.

Oh BTW I just wanted to say your pictures of you in your dress were absolutely gorgeous!

scorpio88
04-14-2008, 12:19 AM
I definitely agree with the first post, make them in separate accounts. I have a friend who was in a long term relationship with a guy (they knew each other since they were 5, started dating at 16, moved in together at 21, and a NASTY breakup at 23 where he tried to take all of her stuff). If you have a set range of what you'd like to have before you move in together, find a certain amount to put into a saving account (separate) a month.

However, even if things dont go as planned, it's always good to have a savings account, plus you both are very young (you're my age actually :)), and you have plenty of time to move in together if you can't afford it in a year. Plus that will give you more time to save up too.

Happy Penguin
04-14-2008, 01:40 AM
thanks girls and dont worry it was going to be in a seperate account no matter what. and britbrat u gave me some good ideas and thank you for the dress comment! im trying to find different ways of saving not just from pay check n going out and stuff so anything you guys come up with let me know im off to bed its 1:45 am here in miami got to be up @ 6 but cant sleep :( so im going to try 2 force my self to sleep have a good one

blondebritbrat17
04-14-2008, 02:58 AM
I second Courtney's ideas about selling stuff. I had a ridiculous amount of books and movies and it was becoming a storage issue here in my apartment. The whole month of this past Feburary every week I sold enough at the used book store to cover at least half of my weekly grocery bill and now my apartment looks all nice and organized. I also found a used clothing store called Plato's Closet that will take my clothes and buy them from me as I lose more weight. They apparently are very widespread across the US and have a website so you can check that out too.

carolineintx
04-14-2008, 10:10 AM
Its always a great idea to save! I had a very low-paying job for a few years so I learned some ways to be frugal in order to make ends meet. Not sure what your current living situation is, but if you have bills like water, electricity, cable, internet, there are always ways to cut those down. I actually went without cable and internet, I would get dvds for free from the library of my favorite shows and movies and watch those when I wanted to watch tv, when I needed to go online I'd also use the library, or an internet pub I used to hang out at.

To save on water and electricity you just need to evaluate what you might be wasting (do you leave the water on when you brush your teeth, do you use the toilet as a garbage can, do you leave lights on in rooms you're not using, do you have drafty windows and doors, do you leave the air conditioning on when you're not home during the day) and make an effort to reduce your usage.

You might want to look into an online savings account like ing direct, you can get more interest than with a regular bank usually, and it adds up. The only downside is that it can take a few days to transfer money in and out of the account, not that handy for emergencies.

If you eat out a lot, thats probably the biggest area you can cut back on to save money, you can eat at home for a fraction of the price of a restaurant usually. Stock up on non-perishables when they're on sale at the store, buy meat in bulk when its cheaper to do so and freeze what you can't use immediately for later. Buy generics instead of name brand, if you don't like tap water buy gallon bottles instead of individual serving bottles.

Thats about all I can think of offhand, hope at least some of those things will help ya!

SassySar81
04-14-2008, 11:16 AM
Here is my advice: don't set a time limit. If you two are in love then it should not matter when you two get to move in together. If it is going to be hard to work with school, then don't. Save what you two can save, and when you both are financially stable then talk about moving in, but I would not put the extra stress of adding a specified time. Also, I hate to burst your bubble and I know it is exciting, but I would wait until both are you done with school. Trust me from experience, then both of you with be able to take the next steps in your life, and won't have to worry about juggling so much.

jillybean720
04-14-2008, 12:51 PM
I know caroline mentioned ING Direct--I second that type of online savings account. I have mine with Emigrant Direct, and the amount I earned in interest last year was pretty awesome. It is true that it can take 2-3 days to transfer the money from that account back into a checking account, but this has been fabulous for me because it ensures I don't just spend the money on impulse without really thinking and planning for it ahead of time. I also keep a credit card and some extra money in my checking account for emergencies, so I don't need the Emigrant account money for emergencies or, if I do, I use a credit card and then have time to transfer the money from the Emigrant account to pay the balance off at the end of the month.

Jeff and I moved in together when we were 23. It would have been insane if we were still in school. We both worked full time, and that was stressful enough. Now we are almost 26 (he will be 26 this week; I will be 26 in July), and we own a townhouse together.

When I had to really buckle down and save up some money, I would never keep cash on me, and I would leave my credit and debit cards at home (with the exception of one zero balance credit card I carried for emergencies) whenever I was just going to work or something where I didn't need to spend money. This kept me from making impulse buys or doing something I was notoriously guilty of like going out to lunch to gossip with friends even if I'd brought a lunch from home :p

Finally, as others have mentioned: budget. Instead of focusing on saving "what we feel we can do without that paycheck," focus on figuring out how much you need to spend from each paycheck. Sit down, figure out your expenses (bills, gas, groceries, and a little entertainment), and keep that money available. Send the rest into savings. The easiest way for me to do this is I figured out my expenses, and each time I get paid, I take out the amount I've determined for expenses as cash. That cash is for me to spend until the next paycheck. When I run out of cash, that's it--too bad until next paycheck (unless it's an emergency or something). Obviously, I don't take out cash for bills, but the cash is for groceries, entertainment, pet care (we have 2 pups), things like that.

I agree with Sassy about not setting a time limit, but, at the same time, I think you guys are smart to be planning and waiting rather than trying to move now.

Happy Penguin
04-14-2008, 01:53 PM
I know caroline mentioned ING Direct--I second that type of online savings account. I have mine with Emigrant Direct, and the amount I earned in interest last year was pretty awesome. It is true that it can take 2-3 days to transfer the money from that account back into a checking account, but this has been fabulous for me because it ensures I don't just spend the money on impulse without really thinking and planning for it ahead of time. I also keep a credit card and some extra money in my checking account for emergencies, so I don't need the Emigrant account money for emergencies or, if I do, I use a credit card and then have time to transfer the money from the Emigrant account to pay the balance off at the end of the month.

Jeff and I moved in together when we were 23. It would have been insane if we were still in school. We both worked full time, and that was stressful enough. Now we are almost 26 (he will be 26 this week; I will be 26 in July), and we own a townhouse together.

When I had to really buckle down and save up some money, I would never keep cash on me, and I would leave my credit and debit cards at home (with the exception of one zero balance credit card I carried for emergencies) whenever I was just going to work or something where I didn't need to spend money. This kept me from making impulse buys or doing something I was notoriously guilty of like going out to lunch to gossip with friends even if I'd brought a lunch from home :p

Finally, as others have mentioned: budget. Instead of focusing on saving "what we feel we can do without that paycheck," focus on figuring out how much you need to spend from each paycheck. Sit down, figure out your expenses (bills, gas, groceries, and a little entertainment), and keep that money available. Send the rest into savings. The easiest way for me to do this is I figured out my expenses, and each time I get paid, I take out the amount I've determined for expenses as cash. That cash is for me to spend until the next paycheck. When I run out of cash, that's it--too bad until next paycheck (unless it's an emergency or something). Obviously, I don't take out cash for bills, but the cash is for groceries, entertainment, pet care (we have 2 pups), things like that.

I agree with Sassy about not setting a time limit, but, at the same time, I think you guys are smart to be planning and waiting rather than trying to move now.

ya i agree since my class got canceled tonight im going to look into those sites, i get direct deposit into my bank checking account so how does this site work and is it trust worthy?

ArmyWife02
04-14-2008, 01:54 PM
i have our savings in ING Direct, which is great. we earn a higher interest than thru our bank and it takes longer to access that money so we have time to think before purchasing thru impulse. great idea! and selling stuff thru craigslist and ebay are a great way to clean out the unneeded stuff and put more money towards your savings.
we;re supposed to aim for 10-20% of your monthly income go to savings...we cant currently do that high of a purchase, so we're sending in what we can....good luck. keep us posted ;)

iriswhispers
04-14-2008, 02:20 PM
just as a basic to save money i recommend resisting little purchases that you might not really need (maybe a cup of coffee or a dinner out, maybe a new shirt you think is cute but don't need) - and then putting the amount you would have spent aside. if it's small things like a soda or coffee, let it add up a bit before taking it to the bank, but physically put the money into a jar or something. (otherwise you'll never end up actually saving it... at least if you're anything like me!) the little things really do add up, trust me!

jillybean720
04-14-2008, 02:59 PM
ya i agree since my class got canceled tonight im going to look into those sites, i get direct deposit into my bank checking account so how does this site work and is it trust worthy?
Emigrant Direct and ING Direct are very trustworthy. They can offer higher interest rates on savings accounts since they don't have physical branches, which means less overhead expenses.

What happens is you set up an account with them online, and then you link that account to a normal checking account you already have. You can then transfer money between the two accounts online.

At my last job, I was able to do direct deposit into multiple accounts, so I would have $250 from each paycheck go into my emigrant account and the rest into my checking. However, at my new job, I can only direct deposit into 1 account, so it will go into my checking account, and then I can either set up my Emigrant account to take money from my checking every other week, or I can wait until I get paid and manually transfer money into my Emigrant account online.