If I remember correctly each of us are to save 10% of every single dollar we bring into our homes ( as in 'paying ourselves first') so we will be financially secure in the future.

Just wondering if anyone actually manages to do it or is this advice truly no longer possible to follow for the majority of us and society in general.

(And nope, I've never been able to pull it off either - huge smile!).

Depends on the day of the week really for me.


Note all figures are fake but proportionally correct
On Friday morning at 00:00:01 my paycheck goes into my bank account.($400)
On Friday afternoon I write the first check off of it for tools ($50)
On Friday night I remove my $100 allowance (Gas and Food)
On Monday I write the second check for Tools ($50)
Usually over the weekend I write a check for about $50 for toys and goodies for the 2 of us
The rest gets saved for rent ($50 per week) and electric ($25 per week)

so theres not much left when I get done at the end of the week. I make ends meet and thats it.

You are not on your own 'BlackSpyder' trying to make ends meet.The biggest percentage of the population, just make ends meet.
For years,whether I could afford something of any value,or not,have a rule which I go by.
If I go into a shop and see something I want,I give myself 24 hrs and if I still want it as bad,I go back and buy it.
Too often I have have bought on impulse only to realize next day,I didn't realy want it that bad.
So easy to whip out the Credit card on the spur of the moment,only to regret it later.

Best advice I could give someone, especially when they are "just starting out" -

Live beneath your means.

Whats a credit card? I got rid of those useless things years ago.

Very good advice Mara, and if one could just do that small thing you would be set up for life. Never managed it myself. LOL. Too many kids.

I dumped my Credit Cards years ago - fastest way I know to go down the financial gurgler. But I have recently obtained a Visa Debit Card which can't be overspent, and find it very handy for purchasing online from all corners of the world.

My Government Superannuation pays all my expenses now, but since I "Retired", LOL, I now have 5 part time jobs which pay for my fancy computers and monitors etc.

Wouldn't be dead for quids. LOL. Now if prospective employers would just leave me alone.

Aah, but how lovely to still be sought after by employers, Rowal - huge smile!

And yup, those pesky credit cards can surely be dangerous indeed. Mine sits in the safety deposit box (for security but also it surely takes care of those sudden urges for an impulse buy, too).

One wee suggestion for those starting out, a 'line of credit' at your friendly neighbourhood bank or credit union can be a terrific thing. If your car goes poof! or another emergency comes up, the interest for money used in this pre-approved line of credit is a minor fraction of what credit cards would charge.

And a huge understanding sigh and gentle smile when it comes to not being wealthy - kids cost a fortune. Worth every penny but wow!

Actually, Credit Cards are not the problem - using them incorrectly is.

If you do not carry a balance, there are a lot of benefits tu using a credit card, not the least of which is the protection you get on a defective item. While you are disputing the item, the credit card company will essentially give you your money back.

Plus, the obvious: you don't have to carry cash, which, if you lose it or get it stolen, is like losing money.

I've carried a "Credit Card"s for many years now. I use it only if I don't have the cash, or the merchant won't take my draft (check). I have a "Debit Card" now also (Limited by me).

Long ago, and far away, We were very poor. That's of no matter now.

I learned to save a bit - no matter how much. It mounts up.

Later on I learned to save a bit more for the families future. That's a key. Save a bit for the future. It mounts up.

I'll leave the investing advice to others more knowledgeable than myself.
Except to say, I'll never have to draw on the USA SS for myself or family now - tho' I'm of age to do so.

All here can do that. Save a little and mount it up?

That is the best advice. The same principle but my dad told us to immediately take some money out of what you earned and live off the rest. Even since I had a paper route as a kid and earned $80 week. He'd take ten and near the end of year he'd give it to me, $500. I could keep 150 and open a savings account and maintain that on my own, he'd check. When I made 250, I lived off 200. The lesson served me well. He did another thing to see if we were being responsible with our money,not blow it all at once.

Somtimes if we were out somewhere like taking a walk. He'd out of nowhere say go in that shop and get me a drink or an ice cream cone or something. Well you'd better have a dollar in your pocket or or you'd really here it. I now always have at least a 100 on me. Just in case Dad says buy us dinner on a whim.

Credit cards are dangerous and almost criminal in some cases. I keep 3. As they are required in certain instance ,such as a car rental. The Amex which I prefer to use as it must be paid when the bill comes. A visa that gets me air miles. A Mastercard that is used only for online purchases. So that if there ever occurs a fraud problem I only have to cancel one card to stop it.
Just one more bit of card advice. Never pay only the minimum if you are carrying a balance. At that criminal rate you will actually NEVER pay it off.

I don't know about 10% of every dollar.
But I have managed to save a little. It was tough, but here's how I did it. I opened one checking account (to pay bills with) and one savings account at the same bank. Both my wife and I had our checks direct deposited in the checking account, a small percentage was to be taken each week from each of our checks (from the checking account) and put in the savings account (Automatically by the bank) That way you never miss the money, and if you need some you can always take it out of the savings account. The money adds up quick if you don't touch it.

This post has been edited by 12x48y: Sep 23 2007, 07:11 PM

Agree with this entirely. If you can use a credit card, and pay it off every month, then a credit card is something that should definitely be used. Why not accrue the points for nothing? Those points do eventually add up and you do eventually get free things through them.

On the other hand, if you are the type that will carry a balance, then they are deadly.

As for saving, take a little bit, it really does not matter how much, and throw it into another account. That little bit will grow steadily, sometimes with astounding growth, over the years due to compounding interest. It really does work. Another method is that whenever you take money out of an ATM, take some of it and put it in an envelope somewhere in your house. Whether it be a dollar or 5 dollars. Eventually you will have enough saved that you wont need to take out money for a while.

How can people get by without at least one credit card?


I find my credit cards to be an integral part of my financial management.

One card gives me 5% back on purchases of gas, food, and drugs. 1% on other items. This card has a $300 cash back yearly limit, so I use it ONLY for gas, food, and drugs. A second card gives me 1% back on all purchases. This one is used for all other items.

Then a debit card just for use at ATMs.

There are just too many things that get difficult without a major credit card - airline reservations, car rental and hotel rooms come to mind immediately. And then there is the issue of credit rating/score. Having and properly using credit cards can have a significant positive benefit to your score - and a higher score means lower rates if/when you need a loan, and lower insurance rates. For better or worse, credit score is being used for more and more things as an idicator of the individuals general financial responsibility.

Forgot about that - with my Discover Card I'm getting 1% cash back. Might not seem like a lot, but every once in a while I can get a check from them for $40 or $60 (They do it in $20 increments.)

I know folks who rack up all sorts of free "air miles" this way, too.

Free stuff is good.

Yup, I use my miles for travel.