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How much should I save vs. spend each month?

I get $175 a week plus $200 a month for CS. My bills are $150 for my phone, $140 for insurance. I have one son who needs diapers, and other than that I just buy our personal stuff. I would like to buy an air purifier, and eventually a good laptop. So how much should I spent a month on entertainment and things I want to buy? And I would also like to start a savings account for my son, how much should I save a week for that?

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Anonymous

Asked by Anonymous at 3:07 PM on Dec. 21, 2009 in Money & Work

Answers (9)
  • You can think about spending when you have at least $10,000 in savings.
    Anonymous

    Answer by Anonymous at 3:13 PM on Dec. 21, 2009

  • I like the Dave Ramsey method. Start with a baby emergency fund. As fast as you can, (Sell so much stuff that the kids think they will be next - Dave Ramsey) save $1000. Then start taking a percentage, 5%-10% if you can, and use it to pay off any debt you have. Once all of your debt is paid off, then use that money to build an emergency fund of 3-6 months worth of bills. If there are certain items you want to buy, then if you have money left over at the end of the month, AFTER paying bills, debt, etc, put that money away to start saving for the items. My brother and his wife have taken every visa gift card, check, or cash they have received as a present for the past 3 years and put it away. They now have enough to completely furnish their downstairs.

    AngelDawn7

    Answer by AngelDawn7 at 3:22 PM on Dec. 21, 2009

  • So altogether your bills are 290? but your income is 900? Sounds like you already have it good, in that situation i would put aside 400 into savings. That leaves you with 210 a month for random expenses. at the end of the year you would have almost 5000. You could definitely get both things you want at the end of the year with out draining your savings, or you could create two savings accts. 1 for long term and one for short term goals. and divide the 400 from there....you have many options with your income
    sweetstkissez22

    Answer by sweetstkissez22 at 3:36 PM on Dec. 21, 2009

  • I'd say, if they are wants, consider passing and saving as much as you can. You never know when something might happend when you'll need that money. Once you have a reasonable amout set aside (only you can decide what is reasonable), then it's ok to splurge on your wants here and there.
    Anonymous

    Answer by Anonymous at 3:40 PM on Dec. 21, 2009

  • You should take out your bill money right away and pay your bills, then put half or over half into savings. If you can you should try to save as much as possible so that it will always be there if you have an emergency! Dave Ramsey is awesome and has a website that could really help you out!

    Desiree
    www.workathomeunited.com/dkm
    To request information on how to earn an income from home!
    lovinglife1127

    Answer by lovinglife1127 at 4:01 PM on Dec. 21, 2009

  • Are you living with someone for free? How are you without a mortage or rent? If you're living off of other people you need to be saving ALL of your income after needs. Get on your feet before you buy a laptop. Just saying.
    Anonymous

    Answer by Anonymous at 4:05 PM on Dec. 21, 2009

  • OP- I live with my parents and I want the laptop so I can start online classes.
    Anonymous

    Answer by Anonymous at 4:42 PM on Dec. 21, 2009

  • Your phone bill is WAY too high. I have two land lines and a cell for about $90 a month. actually I just paid the two land lines, cable and internet for $158. The cell is $20 every three months. The first thing you have to do is track your spending. You should be contributing to your parents. Still living at home with two kids is great for you, but what about the folks picking up your expensnses. That isn't right. Most people spend 1/3 of their income on housing. If your parents don't need the money at least put that amount in savings and learn what it would be like to live within your means. You should at least find out where all your money is going.
    Anonymous

    Answer by Anonymous at 11:10 AM on Dec. 22, 2009

  • I'd put all but $200 in to savings.
    Anonymous

    Answer by Anonymous at 12:30 PM on Dec. 22, 2009

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