Any good financial savings sites or advice from you all out there?

I finally got a great job making 9.50 an hour, min 40 hrs a week, with up to 10 to 20 hrs overtime every two weeks (so 5-10 hrs overtime a week basically). If I go the night shift, I'll get 10.25/hr, same hours, same overtime.

I'm going to move up in the next 6 months to the next step which gives 16.50/hr, same hours, same overtime.

If the higher ups of the universe be willing, I'll then move to the final step a year to a year and a half later making 22.50/hr to start, same hours, same overtime.

I'm just turned 40.
Zero in my savings, but this job has a 401k which I want to start growing and so on.
My current bills are:
rent: 988/mth until April 2014 when it goes down to 550/mth
food: 200 a month
net/phone: 60/month

my 18 yo son lives with me and works there too so those bills are cut in half. so technically my half is
rent, 494/mth
food: 100/mth
net/phone: 30/mth

Electric is included in the rent, and we don't own tv at all period. no real 'outside' entertainment as the net suffices for that.

I may just go rent a 2 bdrm house here in town; the rents are between 300 and 350 a month but then we'd have to pay electric so that could add on another 300 a month I'm guessing. Best to stay where we are now.

Anyway, what would be a good way to start saving for retirement? What would I need to save monthly to get a good nest egg in 25 years? I know if I saved 10k a year, I'd have 250k once I retire. To me that is like upper 1% living since I'm used to paycheck to paycheck with very little hours at min wage (reason why I haven't been able to save til now). Seriously, I know my new job right now is peanuts to most people but right now to me, this is rich living. I have SO much money left over once my rent/bills are paid. I'm in Illinois, Southern, very rural area. No car yet, will be getting one within 6 months so I can start the next step up at my job. If I still lived in the chicago burbs, I'd NOT have this golden opportunity to save. I'm jumping on this opportunity big time - but I just need a little steering in the right direction if anyone can help.

I don't know if I should do that 401k thing, or if I should invest in stocks? I'm totally new to all this 401k and stock business.

Can anyone help a noobie here? Thank you SO SO much.

If you had a savings somewhere in the tens of thousands, which could be a year or more down the track, an Australian whisky distillery gives a guaranteed 9% return on investments over 3 years. I will post a link to the Australian TV program which I saw the details about it on, below.

www.abc.net.au...

Otherwise if your considering diversifying your talents, if you INVEST in a RIGID TRUCK LICENSE and get your passport you could probably snag a job on The Wheatstone Project in Onslo, Western Australia. The average truck driver on that site earns a base wage of $35/hour, 12 hours per day, 7 days per week, working 4 weeks on, 1 week off, Fly-In, Fly-Out from Perth (FIFO) at company expense, NO EDUCATION REQUIRED, with penalties included. The penalties include
Mon-Fri first 8 hours Normal-Time, then any hours after that is Time-and-a-half.
Saturdays is Time-and-a-half for the first 8 hours then the rest of the day is Double-Time.
Sunday is Double-Time ALL DAY

I left school at 17, I've got no education or trade qualifications, but the best investment I have ever made is my Truck License. Your license must include ANY rigid vehicle with 3 axles above 8 tonnes.

The Wheatstone Project is run by an American company called CHEVRON, no doubt you've heard of them, and its a 5000 man project with many US, UK, NZ, and other nationalities already mobilised to make up the apparent lack of Aussie workers in that part of the country because there are many other large projects that demand just as much manpower to operate at a daily level, and despite W.A being larger than Texas it's population is only 1 million people. I've done FIFO work in West Aussie for 4 years now, I am now 43 and its the best thing that has happened to me FINANCIALLY in my life. In another 2 weeks I will be sending resumes to The Wheatstone Project myself.

Wheatstone Jobs

Wheatstone News Article - July 19, 2012.

This might sound like a lot of BS to people who have never worked over here, but if you talk to anyone who has ever worked over here they will relate to you similar details. Before I made the effort to move from Sydney to Perth I worked in a job for 17 years earning $350/wk. No O/T and working in the heat and rain everyday without A/C. It's the best decision I've ever made.

Otherwise you can try a 5% p.a interest paid monthly, high interest saver.

Good Luck

Thank you so much for that information.
I'm going to bed now but I'm going to check out all those links.

First of all, let me say that you're being VERY smart! I wish I had done what you're doing... I could be retired now.

Originally posted by sarra1833
Zero in my savings, but this job has a 401k which I want to start growing and so on.

If the company matches your contribution, put the max amount in there, so their contribution will be max, too.

Anyway, what would be a good way to start saving for retirement?

Just save as much as you can in a separate savings account, and when you get enough to purchase an IRA, do so.

If you can, save up to buy a car with cash. A monthly bill just weighs you down and you pay interest on a loan. Don't use credit cards. Always save up for the stuff you want.

I don't know if I should do that 401k thing, or if I should invest in stocks? I'm totally new to all this 401k and stock business.

Don't buy stocks on your own. Too much risk. Invest in the 401K and mutual funds because they are more diversified (various stocks and bonds). Once you get 25K saved up, you can contact Vanguard and they will help you make your money grow.

Live frugally and maybe get a book or two on how to save. Good luck!

reply to post by sarra1833


Congrats Sarra!

I'm certainly no financial-guru, nor am I wealthy enough to hand out advice regarding the creation of wealth...however, I am working with people much further ahead than me financially, so the best advice I can give you is to do the same. Find people who are where you aspire to be someday and take THEIR advice, coaching, and mentorship. Don't take advice from broke people because obviously they don't have the correct mindset to begin with.

The next best advice I can provide, given my very limited qualifications, is to begin educating yourself on the topic of wealth and finances. Three of my all-time favorite books that really changed my perspective on the subject are:

The Richest Man in Babylon by George S Clason
and
Th ink and Grow Rich by Napoleon Hill
and
Rich Dad Poor Dad by Robert Kiyosaki

I don't know if that helps but I hope it does. We all know it's true; money can't buy happines. But it's a very effective tool to do some very amazing things (for yourself and for others) if you have enough of it.

~Cam

reply to post by sarra1833

I don't know if I should do that 401k thing, or if I should invest in stocks? I'm totally new to all this 401k and stock business.

Can anyone help a noobie here? Thank you SO SO much.

If your employer MATCHES your 401K contribution, you should DEFINITELY take advantage of it. Go with the Medium risk options. If no match, could still be a decent option, but most do some kind of matching. Only put in what they match, not more...but put the max they match if you can do so.

In addition though, I'd recommend stashing some away (in cash). Like $50 a paycheck or more. I know most will say put it in the bank, but too easy to spend on a debit card when out and about. Also, you won't get any real interest from it, and there is always the fact that your bank money exists mostly in cyberspace vs. reality, so LOTS of things could impact it.

when you get enough to purchase an IRA, do so.

These at least, pay decent interest, so yeah, not a bad idea...but don't put ALL your savings into one. I'd always keep SOME cash onhand.

Oh, and your son should be taking the SAME steps! Never too soon!

Thanks everyone SO much.
I've never had a credit card in my life and never will have one. I stick with my debit or cash

Now, IRA. Should I do Roth instead since that is post tax?
And yes, the 401k matches what I put in.
also it said something that I don't understand, let me get my paperwork here.

they have an automatic employee contributions: an automatic 2% pretax contribution will be withheld from my check once I do this.

there is also Automatic matching contributions - Free money! : they make an automatic matching contribution of 25% on the first 8% for a total of 2% (what in the world???????) this contribution is 100% vested after 6 years of service - yours to keep. (what does all that mean? what is vested? how can they put 25% and get 2%? what? i hate math. now I know why)

and they automatically invest in some money market account.

anyway it goes on to say you can do it automatically or manually. Seems manually is better?
''do it yourself and save more than the 2% auto enrollment contribution or invest your conts differently. Matching conts still apply as described, provided you make an employee contribution. Saving at least 8% means that you receive the full matching contribution. In this case a total of 10% is contributed to your account.

so what do they mean? If you do it automatically you only save 2% but if you do it on your own you save 10%?

halp :C

reply to post by sarra1833

Now, IRA. Should I do Roth instead since that is post tax?

Figure that out once you get to that point. May be other options then, even. Wikipedia actually spells it out in pretty good English, to see the differences...

en.wikipedia.org...

also it said something that I don't understand, let me get my paperwork here.

they have an automatic employee contributions: an automatice 2% pretax contribution will be withheld from my check once I do this.

there is also a Automatic matching contributions - Free money! : they make an automatic matching contribution of 25% on the first 8% for a total of 2% (what in the world???????) this contribution is 100% vested after 6 years of service - yours to keep. (what does all that mean? what is vested? how can they put 25% and get 2%? what? i hate math. now I know why)

and they automatically invest in some money market account.

anyway it goes on to say you can do it automatically or manually. Seems manually is better?
''do it yourself and save more than the 2% auto enrollment contribution or invest your conts differently. Matching conts still apply as described, provided you make an employee contribution. Saving at least 8% means that you receive the full matching contribution. In this case a total of 10% is contributed to your account.

so what do they mean? If you do it automatically you only save 2% but if you do it on your own you save 10%?

halp :C

The auto option....this means the amount is automatically taken out of your paycheck each pay period. You don't have to take any further action. (a sound idea). The "25% on the first 8% for a total of 2%" means this:

25% of 8 = 2 right? (8/4). So, up to 8%, they will match 25% of what you put in. Let's say you put in 4% (not 8). 25% of 4 = 1 right? So, you'd put in 4%, they'd match 25% and put in 1% (total of 5%). Make sense?

So, by putting in 8%, they chip in 2% (25% of your 8), for a total of 10% going into the account. Your best option.

The manual option, means you contact payroll each pay period, and decide how much you're putting in of that paycheck. This means you have to remember it, but can change the amount (and earn the ire of your payroll clerk). Unless you really need that 8% some weeks, I would NOT advise this option. Too easy to forget it.

Damn bankers, they always make things sound so complex....evil, evil invention...but what are you going to do, right?

that makes SO much sense now. I'll do the automatic then for sure. I feel so 'out of the loop' in this stuff because no one ever told me about it; probably because I only worked bare minimum wage around 20 hrs a week so... living pre paycheck to pre paycheck (being broke a few days before new check due to everything going to bills and food), it didn't matter TO know that stuff.

I'm glad this is happening now. I may be starting way way too late, but hopefully in a way it's better than /later/ in life. I have that as a regret, not starting sooner but I couldn't.

I'm also very glad my son has his chance to have a HUGE retirement fund. Long as he's set, I'm happy. Hopefully I can learn a bit about stocks later on. I have a friend who plays them and does good though he's lost a bit now and then like everyone does. But then again, someone on here said stocks are kind of a no no. Makes sense if I have to be very careful with my savings, given I don't already have a couple million saved already. Starting from zero kind of nulls a stock plan idea I would think.
Mutual funds. I'lll have to go look into those and see what they are, etc. IT's a better bet for someone in my shoes, I take it?

Forgot to add. The "vested" thing, means you have to be there 6 years before it is truly YOURS.

That is the downside. If you leave the job prior to that, that contribution goes bye-bye. Now, some of these plans have a different vested percentage based on time (for example, you may be 50% vested after 3 years), meaning if you left the job (or were fired, etc.) you'd get HALF of the account. So, you may really want to check on this (and be sure you'll be there for that duration). After 6 years, no matter what, it's yours. But prior to that, it's a risk.

reply to post by sarra1833

But then again, someone on here said stocks are kind of a no no

Well, 401Ks are typically a mix of stocks, bonds, etc. I'll tell you this. I've had to cash in a 401K TWICE in my life, and both times, it was worth well over DOUBLE what my contributions (including the employee match, which basically means quadrupled....) were to it when I did. So worth the tax hit.

I'll echo though...DON'T try and do stocks on your own. The firms that handle 401Ks have huge buying power and can wheel and deal for their clients, unlike the little guy. Let them assume the risk for you. That's what the other poster was saying.

that makes SO much sense now

You just needed to hear it in English, is all. Your 401K sales rep really should have explained it better. I did it in a paragraph. I'm betting he likely had an hour meeting with the employees at your jobsite.

I may be starting way way too late,

Better late than never. You likely still have at least 20 years or more of working in you, so can still make a pretty good nest egg with decent decisions.

This is one of those topics where everyone has an idea of what you should do with your money. Me, too. :-)

1. Eliminate debt. This includes any installment plans, credit card debt, loan debt, mortgages, etc. You should be able to live completely debt free so that all you have is monthly bills: utilities and rent. This stuff costs you a lot. A few bucks a month is hundreds a year and thousands a decade. I am now debt free: No mortgage, no nothing, and I gotta tell ya, it feels pretty damn good! It really helps on the stress scale, too!

2. Pay yourself first. Whatever it is, have it automatically deducted and stuck somewhere safe. At this point you do not want to set up a risky investment. Interest rates on CDs are abysmal right now--just terrible. But the idea is to get some bucks in there. The idea is NOT just to "save for the future" when everyone says it's gloomy. It's to save for the present so that a problem won't send you into a tail spin. What of the fridge breaks? What if your car breaks? What if you suddenly, through no fault of your own, have to pay a few thousand. That money in the bank is there first to protect you TODAY, secondly to protect you tomorrow.

3. Don't get hooked on "a great investment opportunity!" If it's too good to be true and all that. Be the turtle, not the rabbit. Most fast trackers derail. While in their twenties my sister and her spouse lived a high life, bought condos and a hot tub, fast expensive cars, swapped wives, "invested" in sure things, and we just plodded along while they laughed and giggled. Now I make more money retired than when I worked and have enough saved for the rest of my life while she has herpes, lives in a house trailer, and has social security of $900 a month. Conservatism works. It is slow, but it works.

4. Anything you can do to advance your own knowledge is a good thing, anything to make you more valuable to your current employer--and the one after that. You don't have to brag about it. It will be noticed.

Good luck to you. You sound like you're in a good space right now. If we can only get BoyMonkey launched now, that would be great!

TRUST ME don't do the 401 k Scam I mean plan. Here's my advice take any extra you have and try and start a small home based business. It could be anything really, you'll have to do some research to figure out what that would be. Or if you have a set of skills already do that. But make sure it's making you money and you're not losng money doing it. Then any extra money you come across take it out of the bank and stash it somewhere. Avoid all these 401 k scams. It's such a scam. Listen, a bird in the hand is worth more than 2 in the bush. It's worth MORE not less! But they want you to go for the 2 in the bush. You put your money in, and you never ever know if you'll get it out again. The stock market crashes you lose your money, "oh well, too bad...you're 65 and you have a bum leg and arthritice and you can't work you say, and the 401 was to help you retire with? hmmm awwhhh that's just bad isn't it. I guess you'll just have to work til your 80 or move out onto the street!". Like there's nothing backing that 401 plus there's a million entites what would love to get there hands on that money. Trust me, take it out in cash, and put it somewhere safe. You now have your 1 bird in your hand. IT'S IN YOUR HANDS. Think about it. If you need food you have the cash, it's right there. 401, you need the cash, well maybe those 2 birds in the bush just so happen to disappear when you go to collect for one strange reason or another. That's generally how it works. It's the nigerian 401 scam, don't you get it? It's a play on words, thinking we're so retarded that we won't clue in. No our grandparents hand it bang on, cash in hand, put in the mattress or something like that. But again first and foremost try and start a business with the extra money, thats' priority #1.