Help with Saving Money

Seeking Advice Forum
1

I’m not great at saving money and I need some advice, here’s a breakdown of my finances/bills:

I make $21/hr (California). I get paid roughly $1,300 every two weeks.

  • Rent: $300 per month (I live with my fiancée on his parents’ property and we collectively pay $600 all together)
  • Car payment: $280 per month
  • Car insurance: $160 per month
  • Groceries: $200-$300 every two weeks
  • Misc loans: $150 per month
2

In your budget you’ve outlined expenses and income that leave you with room at the end of the month. Which is great. Now start putting some excess cash into savings. Realistically, track every dollar in and every dollar out and then you will know exactly how much you have left to put into savings. Otherwise, if you have no excess cash, you’re omitting some expenses above in any given month.

3

This is a breakdown of your set bills. You do not have a budget. However, you can get there! Where are your misc expenses? Gifts, gas, car repairs, tags and licensing, household items, hair cuts, clothing, personal care, etc. Track every dollar that goes out. The more you track, the more you can figure out your budget and how much you have left to save. A good chunk of what you believe you should have left from this list of bills will actually be going to those items above. However, you should (from what I see) have some money left to save.

4

It’s nice that you’re aware of your finances and looking for ways to save. There are several ways to save money. Here are a few steps to improve your budgeting and savings:

  1. Track Your Exact Monthly Income & Expenses.
    You mentioned getting paid $1,300 every two weeks, which means $2,600 per month.
    • Fixed expenses:
      • Rent: $300
      • Car Payment: $280
      • Car Insurance: $160
      • Misc Loans: $150
    • Variable expenses:
      • Groceries: $400–$600 per month

After deducting all expenses, see how much is truly left over.

  1. Set a Budget Using the 50/30/20 Rule:

    • 50% Needs: Rent, car, insurance, groceries (~$1,300 max)
    • 30% Wants: Entertainment, eating out (~$780)
    • 20% Savings/Debt: Put at least $520 per month into savings or towards extra loan payments.

  2. Reduce Variable Expenses:
    Track grocery spending and set a fixed limit. See if you can lower insurance or refinance car payments. Cut non-essential subscriptions or spending leaks.

  3. Automate Savings:
    Set up an automatic transfer to a savings account every payday. Even $100 per paycheck adds up to $2,400 per year!

  4. Increase Income (If Needed):
    Consider a side gig or asking for a raise if your budget still feels tight.

Making small changes now can build financial security over time.