I've got a trickle-stream of income in my savings account, there's very little so far but it's slowly building up. Are there some choices that might be wise that I should be making, or should I just keep on making deposits?
Make regular deposits and be strict about it. Agree with yourself an amount to put in each month and stick to it. That is the best piece of advice that can be given. I am quite bad with money and I always say I will put some into savings each month and end up putting barely any in comparison to what I had planned. Apart from that, there isn't really much else you can do. As you said, it will slowly build up over time
Dave Ramsey's baby steps for money have worked really well for me. Step 1 is to fund a $1000 starter emergency savings account. This will help pay for minor emergencies (i.e. flat tire, etc.). Step 2 is to pay down all outstanding debts, minus a house. Step 3 is to continue funding your savings until you have 3-6 months of expenses saved. Keep this in an account that's very accessible. This is your emergency savings, so you'll need quick access to this money in an emergency. If you have a fully funded emergency savings, then start investing.
danderson239 pretty much hit the spot there. Though depending on the type of debt that you have, I'd consider paying them off before putting money in the emergency fund since quite frankly, some of the interest rates are monstrous. As for the OP, yes just keep saving. I would recommend having between 2-3 months expenses saved up and kept on the side strictly for emergencies and then when you have that, you can think about other things to do with the money that you have left over. But always keep that 2-3 months worth of expenses saved up since you never know what happens. And if you have to use it, be sure to fill it back up as soon as possible.
I'm bad with money as well, that's why I forced myself to create a bank account. The problem with me is that if the money is in my wallet, I will surely spend it.I'll start up my savings account sometime this month, and I think it really is a great idea to deposit a fixed amount monthly. Great advice. Thank you!
For a lot of people depositing a fixed amount each month is the only way to save money. I really don't understand why you need to spend everything you can get your hands on, but a lot of people are like that. I also suggest that you put that amount of money on the side the very same day that you get paid, this way not only is it done, you can also see how much money you have left for the rest of the month. If not you might fall into the believe that you have more to spend than you should.
Banks are not our friends and those saving accounts really help just because you are putting your money apart because the interests you earn with the accounts are almost nothing. I wish I could put some money aside each month though, I would to have an sos money to resort too.
First of all, keep making the deposits. You can talk to someone in the bank about what options will open up when you have a certain amount of money. If you have $500 for example you may be able to get a GIC (Term deposit) that pays higher interest. You may also be able to get into mutual funds at that dollar value (riskier, but better possible payout).
