When I opened my inbox today, I found a message from the bank. My automatic transfer had gone through, adding another chunk of change to my savings account.
Recently, I dedicated one of my savings accounts for a specific goal: new windows for my house. When I purchased the house more than two years ago (wow, time flies!), I knew the windows would need to be replaced eventually. My house has been around a while and still has its original windows...from the 1960s. And after estimating the cost to replace them, I decided it'd be better to start saving now, even if they'll last a few more seasons.
Saving for a specific goal has really helped my savings stay in savings. Plus, I can track my progress and set up recurring transfers to help me keep the right amount going in each month (I just divided the total amount I need by the months I have to get there, and make sure at least that amount goes into savings automatically each month).
Thinking about my own savings goal got me wondering: What are all of you saving for?
For me, it was important to find a balance between saving for the things I needed and still focusing on repaying my debt. Saving versus paying off debt 
is, in my opinion, something you need to decide for yourself. Each person is different — everyone saves for different goals and deals with different debts.
Have you been managing saving while paying off debt? If so, tell us: How did you find a good balance between the two?
i need a loan but i dont have a cosigner
Hey Anonymous – We’ve been getting some similar comments on one of Delenie’s recent posts. Head here to check out the conversation: http://blog.wellsfargo.com/StudentLoanDown/2009/07/managing_my_expenses.html#comments
Well, I'm gearing up for my senior year. Thankfully, I started a budget on July 1. Unfortunately, with a PT job that doesn't always give me set hours, i've found it hard to make/keep a budget when i'm not sure what i will be making month to month. What do you recommend I do? As for saving and balancing my time, in the immediate circumstance, I'm saving up for some items I'll need for my room when I head back in late september, but beyond that by the time I graduate, I'll have a little less than $6500 in undergraduate student loans. With an amount, smaller than most, do you recommend I simply save the little money i'll have coming in over the year (including jobs during breaks) or start putting it towards interest/principle?
my schoool doesnt partipate in student loans. i need one . can you help?
JR – Budgeting with a variable income can be difficult. Some months when you have a lot of hours you may be tempted to spend more, but you could end up in a tough situation during months when you don’t work as often.
For folks who find themselves in this situation (the self-employed, those who work on commission, etc.), it may be helpful to have a bit of a savings buffer to pull from each month. So if you have a handle on your expenses each month, you generally know what total amount you’re going to need. Then if you’re in a month with lower pay, you can pull from the savings buffer to cover your expenses. But you have to remember in months when you have a surplus to add that to the savings buffer rather than spend it.
As far as your student loans go, first off way to be smart about borrowing by keeping your total to a manageable amount. What you do with the money you earn throughout the year really depends on what you think will be the best for your financial situation. You could be saving so you have a bit of money for emergencies, etc. once you graduate.
But you make a good point about putting that money toward your student loan. Since any unpaid interest will be capitalized (added to the principal balance) when you enter repayment, you could save yourself some money in the long run by paying off the interest before that happens. Maybe a 50/50 solution would make sense so you’re tackling both. Plus, even if you choose to save initially, you could take from the savings you build over the year to pay off your interest before it is capitalized if you wanted.
Anonymous – most student loan providers lend only at schools that meet U.S. Department of Education eligibility criteria.
Have you talked with your school about financial aid options other than student loans? Is there a payment plan or other arrangement that might work for you? Or have you considered looking at using a personal loan or line of credit to pay for school? You wouldn’t have the same benefits of a student loan, but it may be an option if you need to borrow for school.
Your school would be the best place to start to see what other students in your situation have done.