I need to start saving

General
1

Hi, 23F, I need to start saving money but I feel like I don’t make enough to save ?? Here are my expenses and income as follows.

Rent - $1090 Car note - $184 Car insurance - $125 Light bill - $60 Groceries - $150

Paycheck - $839 a week or $3356 a monthI need to start saving
Hi, 23F, I need to start saving money but I feel like I don’t make enough to save ?? Here are my expenses and income as follows.

Rent - $1090 Car note - $184 Car insurance - $125 Light bill - $60 Groceries - $150

Paycheck - $839 a week or $3356 a month

2

You’re earning $3,356 a month, but your expenses are $1,609? That doesn’t quite explain why you can’t save. Even if we round your expenses up to $2,300, you could still easily save $1,000 each month. Do you realize what $1,000 saved monthly could amount to in 25 years? Let me tell you! With a 7% annual return, you’d have $810,000.

You really need to sit down and track where your money is going. Create a detailed monthly budget that includes all your expenses. Even if you’re spending $750 more each month, you’d still have room to save significantly.

3

but thank you for that I will definitely sit down and look at where my money is going

4

I’m definitely not trying to be snarky here and genuinely want to help you. I wish someone explained this to me at 23 and I didn’t have to learn it at 29. You can set yourself up for such a breezy easy life if you start now. With your current salary you can still have fun and save at the same time and that’s great! Stay away from credit!

5

Buying lunch, coffee, and takeout can add up to $500/month. Review memberships, apps, and entertainment.

6

I know it doesn’t make sense. I am an overspender.

7

Save first, spend the rest. Transfer 25% of your paycheck to savings, then cover expenses. Track everything.

8

Automate savings: 15% to 401k, $50-$100 weekly to savings. Track all bills and expenses.

9

@LENAHZ This helps so much. Especially if you don’t ever look at the account by having it 8n a separate bank or 401k

10

You can definitely save - even if it is only $20/month - which isn’t the case here. You have to take a look at where your money is going and budget in savings as though it’s a value/something that is important to you.

11

First, review your bank and credit card transactions, categorize spending, and find problem areas!

12

Do you have more expenses that you didn’t list in the post? Your post says your expenses are $1,609 and income is $3,356, which would mean you have $1,747 left over to save.

Where is that $1,747 going? Write down a full list of expenses so people can give you advice.

13

yes ! I forgot to add dog grooming - $75 and gas - $50 thank you

14

Track every expense for 1-2 months, including dog care, entertainment, and dining out, to adjust spending.

15

You might buy without realizing it, like me. Only carry an emergency card or a $100 prepaid card. Transfer money to savings immediately. For spending, use cash. Leave online items in your cart for 5 days to see if you really need them, and remove stored cards to force manual entry when buying online.

16

Do you not go out to eat? Any other utilities?

How much do you spend on your hobbies? Any tv subscriptions?

17

Sounds like you’ve got a solid plan in the making! Maybe consider picking up a side hustle or cutting back on those grocery trips with some meal planning magic. You got this!