Hi all, I’m looking for some advice on how to put away money and if there are any special accounts I should look into for doing so. I make about $1400 a month and I’m about to be living alone for the first time, moving out soon. My bills at the new place will be around $960 monthly, which includes everything like water, electric, gas, internet, cell phone, lot rent, car insurance, and gas for my hybrid car. I’m on EBT for groceries and also have an Aetna card for essential items like body care, feminine hygiene, and some medications. After paying the bills, I usually have about $450 left over at the end of the month. Since I’m not much of a spender, I want to know what type of account I should consider for saving this extra money. I really do try to save every cent that isn’t spent on my daily soda. Any tips for accounts would be much appreciated.
If you’re just looking for a savings account, a high yield savings account will do. There are options like Discover, Ally, Marcus, and Capital One. They’re all pretty similar.
Kai said:
If you’re just looking for a savings account, a high yield savings account will do. There are options like Discover, Ally, Marcus, and Capital One. They’re all pretty similar.
Okay, I will definitely look into a HYSA as soon as possible. I was thinking about this but wasn’t too sure. Thank you for the suggestion.
The Capital One savings account is really easy to set up online. If you need to transfer money, it only takes a business day.
Also, Capital One doesn’t have any weird requirements for their HYSA, which is nice. There’s no limit on how many transfers you can make or minimums to hold your money. You can even set up multiple savings accounts under one account.
@Jem
Thanks for adding that. That’s exactly why I chose them when I started putting money into a HYSA. I kinda regret not doing it years ago.
If your disposable income is around $450, I would suggest saving about $400 each month. Since you mentioned having no debt, that’s great. If you save $400 monthly for just two years, you’ll have over $10k in your bank account. That could really help you jumpstart your life and possibly move away from EBT assistance. It might be a bit tough not going out during that time, but you could explore hobbies like reading or learning about personal finance while saving for your future.
@Uma
Yes, I have no debt at all. I’ve been super careful to avoid it. I’m more of an introvert and enjoy my own company, so staying home sounds great to me.
Just keep in mind that pet costs can add up, especially for vet bills. Are you sure you want to leave your parents’ home now? It might be a good idea to stay a bit longer to save more. Do you have an emergency fund set up? It’s good to have some extra cash for unexpected expenses.
@Wren
I actually have about $18k cash for purchasing the home and around $8.5k in emergency savings, just in case my benefits get cut. I prefer to stay home and do my own thing, so I’m okay with that.
Don’t forget about property tax and home insurance. Those can really add up over time.
Firth said:
Don’t forget about property tax and home insurance. Those can really add up over time.
I’m renting a lot in a mobile home park, so I don’t think I’ll have those costs. Insuring the mobile home would be more expensive than a regular home, so I’m not planning to do that.
@Ellis
Oh, got it. I thought you were buying a house. My bad.
You should consider insuring your belongings at least. It can save you a lot of trouble down the line.
Maybe take $20 out in cash every month and put it in a fireproof safe at home. It’s good to have cash on hand for emergencies.