Whether you want to invest in a business or retirement, in either case you need to be saving your money NOW.
If you're saving for retirement, you want to invest tax free (like IRA, 401(k), etc.) If you're investing to open a business, that will fall into the taxable savings category. For that you should put your savings into a good long-term capital appreciation and income fund. We're talking about a savings term of 5 to 8 years. The vanguard star mutual fund (VGSTX) is a good medium-term savings fund. Put your savings in this fund and let it appreciate with the market.
About six months before you're ready to make your purchases, move the money out of the mutual fund and into a more stable account (like a savings account at a bank). You will want to watch the markets closely for a few months around the time you're ready to take your money out. You want to try to withdraw as close to a high-point as possible to maximize your returns.
For day to day savings:
* Drink PBR in the 18 or 24 pack when you don't have home brew
* Buy beans and rice in bulk and get creative with the spices
* Seek in season produce (easy to do, it's whatever is on sale)
* Typically wednesday evening around 8pm grocery stores have their best sales. This could vary depending on when their trucks come in though...
* Cut down meat intake
* Drive POS car
* Live in POS apartment (w/ roommate)
* Don't ever ever ever use a debit card
* Credit cards are OK IF YOU PAY THE FULL BALANCE EVERY MONTH
* NEVER pay bills late
* Pack lunch as much as possible
* Walk or bike as much as possible
* Drink cheap hard liquor in the "handle" sizes (McCormik's is pretty solid)
* Don't buy unnecessary stuff
* Find ways to party down without spending much money. Dive bars, house parties, etc.
You should figure out how much you need to save for your business and then put away enough monthly to meet your timeline goals in your savings first. Then budget your bills (make cuts when necessary). Then pay yourself an allowance for everything else. If you have anything left over, it goes back to savings.
If you're saving for retirement, you want to invest tax free (like IRA, 401(k), etc.) If you're investing to open a business, that will fall into the taxable savings category. For that you should put your savings into a good long-term capital appreciation and income fund. We're talking about a savings term of 5 to 8 years. The vanguard star mutual fund (VGSTX) is a good medium-term savings fund. Put your savings in this fund and let it appreciate with the market.
About six months before you're ready to make your purchases, move the money out of the mutual fund and into a more stable account (like a savings account at a bank). You will want to watch the markets closely for a few months around the time you're ready to take your money out. You want to try to withdraw as close to a high-point as possible to maximize your returns.
For day to day savings:
* Drink PBR in the 18 or 24 pack when you don't have home brew
* Buy beans and rice in bulk and get creative with the spices
* Seek in season produce (easy to do, it's whatever is on sale)
* Typically wednesday evening around 8pm grocery stores have their best sales. This could vary depending on when their trucks come in though...
* Cut down meat intake
* Drive POS car
* Live in POS apartment (w/ roommate)
* Don't ever ever ever use a debit card
* Credit cards are OK IF YOU PAY THE FULL BALANCE EVERY MONTH
* NEVER pay bills late
* Pack lunch as much as possible
* Walk or bike as much as possible
* Drink cheap hard liquor in the "handle" sizes (McCormik's is pretty solid)
* Don't buy unnecessary stuff
* Find ways to party down without spending much money. Dive bars, house parties, etc.
You should figure out how much you need to save for your business and then put away enough monthly to meet your timeline goals in your savings first. Then budget your bills (make cuts when necessary). Then pay yourself an allowance for everything else. If you have anything left over, it goes back to savings.
