How to save money.

[Dotakels]

I totally agree with the original poster. But there is one more important thing which is well said by the famous business tycoon Warren Buffett that as soon as possible try to create a second source of income. Now let's try to understand what this second source of income can be: it can be an investment in the form of property through which you can have a rental income, or it can be buying of shares of some good dividend paying company, etc. But the sooner you created this source the better would be for yourself.

Yeah that is my point in my thread. I said that there are 2 types of how you spend your savings. Your example that you have must second income is my second type how you spend . If you read the thread and understand you must invest or make a business so that your savings will be worth it and also you can have another income.

Ya, true. I might have missed that point. But could you please explain, what kind of new business we can start for second income other than the full time job, one is occupied with? Even I want to do something like this other than my full time job. Thanks.

hmmmm. I think its depends on your country what type of area is that . But i suggest to you to have a house rental, This business will not be failed and your income in this business are monthly so you have extra income every month except your salary, Or if you don't type to build a house rental you can franchise this business is hard because your success here are all depends on the franchisees.

[manselr]

When consumption comprises 70% of the US economy, economists and the government view savings as extremely negative. They actively try to get every American to spend every dollar they have. It's one of the great moral bankruptcies of economists and the US government. They encourage people to be in a situation where "retirement" means a cardboard box and dog food.

[Dotakels]

When consumption comprises 70% of the US economy, economists and the government view savings as extremely negative. They actively try to get every American to spend every dollar they have. It's one of the great moral bankruptcies of economists and the US government. They encourage people to be in a situation where "retirement" means a cardboard box and dog food.

Why they think that savings is negative? Savings are so very useful. If they spend all the dollars that they have? What happened if theres a emergencies . How they get a money  to pay the bills in the hospital. And if they spend all the money that they have how will they face the tomorrow ? If they not have a extra money? They think that if their citizen save, the money will be hold and the money in the circulation will be low.

[freeyourmind]

My current salary right about $ 192 / month (it's quite high on Asia)

$ 77 used it to pay my life insurance
$ 46 used it for daily eat
$ 20 ~ 40 used it for school things & fun

I'm glad that I can save my money about $ 29 ~ 49 every month  

May I ask what country you live in and what your age is?  $77/month sounds high for life insurance and dedicating 40% of your income to life insurance also doesn't sound right.  What is your coverage?

Unless you have dependents that rely on you for basic needs and would be left with nothing if you were to pass away, I would tone down that life insurance.  I live in Canada, and paying $70 for life insurance even given a $4000/month income is too high for me.

Again, I don't know what your particular situation is, but putting 40% of income into life insurance is insane around here.  Putting 40% of income towards a mortgage to pay for a house, is even on the high end, and at least you are able to benefit from the house.

[Sithara007]

When consumption comprises 70% of the US economy, economists and the government view savings as extremely negative. They actively try to get every American to spend every dollar they have. It's one of the great moral bankruptcies of economists and the US government. They encourage people to be in a situation where "retirement" means a cardboard box and dog food.

That's what now a days every country is trying. They want their people spend to every single penny they have. So that there will be more spending, so more manufacturing, more growth.

[GreenStox]

Yeah, most people don't realize they can easily city out 10-20% by getting rid of additional expenses/impulse buys. Skip the $4 cup of coffee every day. Don't grab a bag of chips, smokes and a soda every time you get gas, drink water when you go out to eat, change you cable/phone plan (do you even need cable these days???), etc. Cutting your expenses should be your first goal .

Yea i dont drink coffe, i rarely eat chips, i dont smoke, and i dont have a car.

I live on pretty small amounts of money, and i save the rest in my bank account and other investments, trying to shift myself into bitcoin more.

I also dont have debt and never had any. I dont use credit card nor other fraudulent items.

[Sithara007]

Yeah, most people don't realize they can easily city out 10-20% by getting rid of additional expenses/impulse buys. Skip the $4 cup of coffee every day. Don't grab a bag of chips, smokes and a soda every time you get gas, drink water when you go out to eat, change you cable/phone plan (do you even need cable these days???), etc. Cutting your expenses should be your first goal .

Yea i dont drink coffe, i rarely eat chips, i dont smoke, and i dont have a car.

I live on pretty small amounts of money, and i save the rest in my bank account and other investments, trying to shift myself into bitcoin more.

I also dont have debt and never had any. I dont use credit card nor other fraudulent items.

Then you must be a saint
That's really surprising to see such a person on internet.

[GreenStox]

Yeah, most people don't realize they can easily city out 10-20% by getting rid of additional expenses/impulse buys. Skip the $4 cup of coffee every day. Don't grab a bag of chips, smokes and a soda every time you get gas, drink water when you go out to eat, change you cable/phone plan (do you even need cable these days???), etc. Cutting your expenses should be your first goal .

Yea i dont drink coffe, i rarely eat chips, i dont smoke, and i dont have a car.

I live on pretty small amounts of money, and i save the rest in my bank account and other investments, trying to shift myself into bitcoin more.

I also dont have debt and never had any. I dont use credit card nor other fraudulent items.

Then you must be a saint
That's really surprising to see such a person on internet.

Yea i kinda have my own life philosophy, besides most rich guys dont spend much at all. And those who push money away from them will never have money.

[Salomon12]

My current salary right about $ 192 / month (it's quite high on Asia)

$ 77 used it to pay my life insurance
$ 46 used it for daily eat
$ 20 ~ 40 used it for school things & fun

I'm glad that I can save my money about $ 29 ~ 49 every month  

May I ask what country you live in and what your age is?  $77/month sounds high for life insurance and dedicating 40% of your income to life insurance also doesn't sound right.  What is your coverage?

Unless you have dependents that rely on you for basic needs and would be left with nothing if you were to pass away, I would tone down that life insurance.  I live in Canada, and paying $70 for life insurance even given a $4000/month income is too high for me.

Again, I don't know what your particular situation is, but putting 40% of income into life insurance is insane around here.  Putting 40% of income towards a mortgage to pay for a house, is even on the high end, and at least you are able to benefit from the house.

At around that rate for USD $77 per month, that is roughly USD $500,000 Coverage for 20 Years in Hong Kong. A decent coverage to be honest.

[Sithara007]

I totally agree with the original poster. But there is one more important thing which is well said by the famous business tycoon Warren Buffett that as soon as possible try to create a second source of income. Now let's try to understand what this second source of income can be: it can be an investment in the form of property through which you can have a rental income, or it can be buying of shares of some good dividend paying company, etc. But the sooner you created this source the better would be for yourself.

Yeah that is my point in my thread. I said that there are 2 types of how you spend your savings. Your example that you have must second income is my second type how you spend . If you read the thread and understand you must invest or make a business so that your savings will be worth it and also you can have another income.

Ya, true. I might have missed that point. But could you please explain, what kind of new business we can start for second income other than the full time job, one is occupied with? Even I want to do something like this other than my full time job. Thanks.

hmmmm. I think its depends on your country what type of area is that . But i suggest to you to have a house rental, This business will not be failed and your income in this business are monthly so you have extra income every month except your salary, Or if you don't type to build a house rental you can franchise this business is hard because your success here are all depends on the franchisees.

Thanks but rental income is not possible for me. I am not located at a single country. and don't have enough money to buy a new house for rental income. Can't even afford to buy house for myself.

[Dotakels]

I totally agree with the original poster. But there is one more important thing which is well said by the famous business tycoon Warren Buffett that as soon as possible try to create a second source of income. Now let's try to understand what this second source of income can be: it can be an investment in the form of property through which you can have a rental income, or it can be buying of shares of some good dividend paying company, etc. But the sooner you created this source the better would be for yourself.

Yeah that is my point in my thread. I said that there are 2 types of how you spend your savings. Your example that you have must second income is my second type how you spend . If you read the thread and understand you must invest or make a business so that your savings will be worth it and also you can have another income.

Ya, true. I might have missed that point. But could you please explain, what kind of new business we can start for second income other than the full time job, one is occupied with? Even I want to do something like this other than my full time job. Thanks.

hmmmm. I think its depends on your country what type of area is that . But i suggest to you to have a house rental, This business will not be failed and your income in this business are monthly so you have extra income every month except your salary, Or if you don't type to build a house rental you can franchise this business is hard because your success here are all depends on the franchisees.

Thanks but rental income is not possible for me. I am not located at a single country. and don't have enough money to buy a new house for rental income. Can't even afford to buy house for myself.

i didn't say that you buy a a house. build a house using you savings this is the reason why you save, for emergencies and for personal sake and business. So save as you can build a house rental.

[freeyourmind]

My current salary right about $ 192 / month (it's quite high on Asia)

$ 77 used it to pay my life insurance
$ 46 used it for daily eat
$ 20 ~ 40 used it for school things & fun

I'm glad that I can save my money about $ 29 ~ 49 every month  

May I ask what country you live in and what your age is?  $77/month sounds high for life insurance and dedicating 40% of your income to life insurance also doesn't sound right.  What is your coverage?

Unless you have dependents that rely on you for basic needs and would be left with nothing if you were to pass away, I would tone down that life insurance.  I live in Canada, and paying $70 for life insurance even given a $4000/month income is too high for me.

Again, I don't know what your particular situation is, but putting 40% of income into life insurance is insane around here.  Putting 40% of income towards a mortgage to pay for a house, is even on the high end, and at least you are able to benefit from the house.

At around that rate for USD $77 per month, that is roughly USD $500,000 Coverage for 20 Years in Hong Kong. A decent coverage to be honest.

So the question is are you treating life insurance as an insurance or as an investment for your family upon your passing?  Really need to hear back from sukamosoto on what his age and coverage is.

But for your example, assuming that you're 30 and the average life expectancy is ~79 years old give or take depending on where you live, it is unlikely that you will pass away in the next 20 years due to natural causes.  But you will have paid about $18k in life insurance, which represents 40% of income, with nothing to show for it (zero savings and zero consumption).

What is the point in sacrificing such a large portion of your income from a ridiculously large coverage like $500k?  That is 217 years of sukamosoto's income.  To me, that is a speculative play, where my passing would hook up my family financially, for much more than I provided for them when I was living.

Perhaps sukamosoto has a valid reason for this (maybe he has many people that are financially dependent on him), but otherwise, and this is just my opinion, your income is far too heavily weighted on insurance.  Keep in mind insurance companies are in the business of getting more money than they pay out.  Otherwise they wouldn't be solvent.  You could reduce the insurance policy and coverage down significantly to the point where you have a $5/month or $10/month premium, and you can save the other $67-72 per month.  Maybe use some of that for consumption, share some with the family and save or invest the rest.  It's better to live that way than to put all your eggs in the basket of death.

[Sithara007]

I totally agree with the original poster. But there is one more important thing which is well said by the famous business tycoon Warren Buffett that as soon as possible try to create a second source of income. Now let's try to understand what this second source of income can be: it can be an investment in the form of property through which you can have a rental income, or it can be buying of shares of some good dividend paying company, etc. But the sooner you created this source the better would be for yourself.

Yeah that is my point in my thread. I said that there are 2 types of how you spend your savings. Your example that you have must second income is my second type how you spend . If you read the thread and understand you must invest or make a business so that your savings will be worth it and also you can have another income.

Ya, true. I might have missed that point. But could you please explain, what kind of new business we can start for second income other than the full time job, one is occupied with? Even I want to do something like this other than my full time job. Thanks.

hmmmm. I think its depends on your country what type of area is that . But i suggest to you to have a house rental, This business will not be failed and your income in this business are monthly so you have extra income every month except your salary, Or if you don't type to build a house rental you can franchise this business is hard because your success here are all depends on the franchisees.

Thanks but rental income is not possible for me. I am not located at a single country. and don't have enough money to buy a new house for rental income. Can't even afford to buy house for myself.

i didn't say that you buy a a house. build a house using you savings this is the reason why you save, for emergencies and for personal sake and business. So save as you can build a house rental.

Don't even have land to build on it. First of I will have to buy a descent size land and that will take a fortune. Not possible right now.

[Enzyme]

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

[Dotakels]

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

[BTCevo]

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

Every investment sure got risk, no matter it is a low risk or high risk. A great businessman said that higher the risk higher you will get. That things like freeze our money sure isn't count as investment, because we can't do anything about it, just wait to get that 1-3%, lets say you have got so much money of course the 1-3% is higher than low money How about people that dont have much money? How long they need to wait to get their money that they need?

[Dotakels]

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

Every investment sure got risk, no matter it is a low risk or high risk. A great businessman said that higher the risk higher you will get. That things like freeze our money sure isn't count as investment, because we can't do anything about it, just wait to get that 1-3%, lets say you have got so much money of course the 1-3% is higher than low money How about people that dont have much money? How long they need to wait to get their money that they need?

How they invest if they don't have enough money? Do you think they will invest if they dont have enough money?  If they cannot afford or they money is not enough to that investment why they go there and invest? They must invest that they can afford. No you know?

[dothebeats]

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

Impossible. Even the banks (which I think you're referring to) could get out of funds in some rare cases. Every investment in this world comes with different degrees of risks. It's just up to the investor himself/herself to minimize those risks in order to decrease the possibility of him/her on having a loss of investment.

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

Every investment sure got risk, no matter it is a low risk or high risk. A great businessman said that higher the risk higher you will get. That things like freeze our money sure isn't count as investment, because we can't do anything about it, just wait to get that 1-3%, lets say you have got so much money of course the 1-3% is higher than low money How about people that dont have much money? How long they need to wait to get their money that they need?

How they invest if they don't have enough money? Do you think they will invest if they dont have enough money?  If they cannot afford or they money is not enough to that investment why they go there and invest? They must invest that they can afford. No you know?

Well not every investment is in the form of putting your money in a certain company and let them do the work for you. There are other things that could be considered as an investment, though, and investments aren't just exclusive to big companies. Even your $10 could make a pretty good investment, if you would ask me. I know that we live in the same country, and I know that you are fully aware of the conditions of the poverty-stricken people living in here. Sidewalk vendors, street merchants, cigarette dealers etc. can be considered as "investors" because apparently, they put their money on things that could give them profit, hence the term "investment". If I don't have that much money, I would definitely not put in bank because the gains that I could get would be ridiculously small, compared to if I bought some things that I can sell to others.

[BTCevo]

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

Every investment sure got risk, no matter it is a low risk or high risk. A great businessman said that higher the risk higher you will get. That things like freeze our money sure isn't count as investment, because we can't do anything about it, just wait to get that 1-3%, lets say you have got so much money of course the 1-3% is higher than low money How about people that dont have much money? How long they need to wait to get their money that they need?

How they invest if they don't have enough money? Do you think they will invest if they dont have enough money?  If they cannot afford or they money is not enough to that investment why they go there and invest? They must invest that they can afford. No you know?
[/quote]

Well not every investment is in the form of putting your money in a certain company and let them do the work for you. There are other things that could be considered as an investment, though, and investments aren't just exclusive to big companies. Even your $10 could make a pretty good investment, if you would ask me. I know that we live in the same country, and I know that you are fully aware of the conditions of the poverty-stricken people living in here. Sidewalk vendors, street merchants, cigarette dealers etc. can be considered as "investors" because apparently, they put their money on things that could give them profit, hence the term "investment". If I don't have that much money, I would definitely not put in bank because the gains that I could get would be ridiculously small, compared to if I bought some things that I can sell to others.
[/quote]

Well if you said 'sidewalk vendors, street merchants, cigarette dealers' can be considered as investor, I wont say that it will be like that, because investor means that people put their money to be invested and hope it will gain a lot from it. As long as they put a lot money to be invested they must get more from their invested money. Altough it really give it a high risk to them they are still going to invest it as long as they can afford their lose to the invest

And if you just buy things then selling to others that means you are do trading not do the investment

[Dotakels]

Nice method, the best way of saving is putting aside a certain percentage of your income.
Invest, and you may lose it all.

Not all investment may lose your money. Theres a investment that have 0% risk and that investment will freeze your money and you will earn 1-3% profit of your invest money.

Every investment sure got risk, no matter it is a low risk or high risk. A great businessman said that higher the risk higher you will get. That things like freeze our money sure isn't count as investment, because we can't do anything about it, just wait to get that 1-3%, lets say you have got so much money of course the 1-3% is higher than low money How about people that dont have much money? How long they need to wait to get their money that they need?

How they invest if they don't have enough money? Do you think they will invest if they dont have enough money?  If they cannot afford or they money is not enough to that investment why they go there and invest? They must invest that they can afford. No you know?

Well not every investment is in the form of putting your money in a certain company and let them do the work for you. There are other things that could be considered as an investment, though, and investments aren't just exclusive to big companies. Even your $10 could make a pretty good investment, if you would ask me. I know that we live in the same country, and I know that you are fully aware of the conditions of the poverty-stricken people living in here. Sidewalk vendors, street merchants, cigarette dealers etc. can be considered as "investors" because apparently, they put their money on things that could give them profit, hence the term "investment". If I don't have that much money, I would definitely not put in bank because the gains that I could get would be ridiculously small, compared to if I bought some things that I can sell to others.
[/quote]

Well if you said 'sidewalk vendors, street merchants, cigarette dealers' can be considered as investor, I wont say that it will be like that, because investor means that people put their money to be invested and hope it will gain a lot from it. As long as they put a lot money to be invested they must get more from their invested money. Altough it really give it a high risk to them they are still going to invest it as long as they can afford their lose to the invest

And if you just buy things then selling to others that means you are do trading not do the investment
[/quote]
I think thay street vendors, sidewalk vendors are not an investors. In investing you wouldn't have to get tiree to earn money in investing your money will be allowed to borrowed it of the company and if their business are failed you wouldn't have a profit and your money will lost too. But if their business are successful your money will have a profit as your contract says.