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How can I establish real savings or credit?
I can never establish real savings or credit and it's really aggravating to me. I've been in college for a year and a half and I also work somewhere between part time and full time (depending on the week). I have a car payment and car insurance that come out to around $420, and then of course there's groceries and gas which is usually another $120 a month (I don't drive that far and I also have a meal plan so I use that for a few meals a week and other groceries I bargain hunt for).
I should be making around $700 a month, but that never seems to be the case because there's always some hours I can't work due to having too much homework.
Anyways, I still try to save a little bit, but it almost never works out because something ALWAYS happens. Every single last time!
For example, I finally had a bit of money saved up this week and now I need an oil change and my car only takes synthetic so that's going to cost me anywhere between $60-80. Then a prescription I have which is usually free suddenly started being $20 a month. So right away there goes $100 I don't really have that I have to throw out.
If it's not that then it's somebody's birthday or a holiday and every semester my textbooks come out to $200-300 so I have to prep for that every 4 months.
Then there's other always other various expenses that come up as things break, run out, or wear out and they always seem to happen right after I've finally saved up a bit.
I want to try establishing credit because right now my credit score is only like 603 which I know isn't good, but it's because I have a car loan and school loans out and have never built my credit. Whenever I apply for a credit card though they tell me that I don't have a high enough score and that I have revolving credit out (because of the loans). They usually offer me a secured credit cart, but always want me to put $300-1000 down on it, which I never have just floating around to use. I could do small payments every month like $25-50 on it, but I can't really put $500 down all at once.
I really need some kind of credit though because my laptop is acting like it's powersource is dying and a good laptop can be $700+. Of course having a laptop is mandatory for school and my job.
How can I start saving more money or go about building credit in some ways I wouldn't think of?
I already do a lot of bargain hunting and am constantly watching for sales so I dont spend a lot of money on thing, but still I can't seem to save up enough...
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You write that you make $700 a month. Is that your gross pay or what you have in hand after taxes are withheld. If that is the gross pay then your take home pay is less.
One way to increase your take home pay is to increase your dependents on the W-4 you have filed with your employer. IF you filed for zero increase it to 1. IF you filed for one increase it to 2.
Your books and tuition, medication and mileage to the drugstore and doctor's office are tax deductible and can make up any shortfall you may have at the end of the year when you do your taxes. You may have to do a long form tax return or go to a tax preparer to take advantage of all tax deductions you have.
Note: If you are going to take yourself as a deduction on your taxes then your parents may not take you as a deduction. Make sure to tell them you plan to take yourself as a deduction on your taxes.
Once you know what an average take home paycheck will be you need to plan a budget. You already know you have fixed monthly expenses of $440.00. Deduct this from your take home pay. The rest is what you have for spendable income to budget with.
Now you know you will need $300.00, use the higher number for budgeting, for books. Divide this by the number of months until you will need to buy books. Of course this this time the duration will be shorter and the amount you need to set aside for books will be higher. Next semester it will be longer and the amount shorter. Each pay day this amount goes into a checking or savings account.
From what is left over put 10% into savings. Hold some aside fro gas for the car. Put some aside for contingencies. The rest is spendable for entertainment or clothes.
Because of the fixed expenses you have and the amount you need to set aside for books you may not have a lot left over. Even so set that 10% aside for savings. This is how you build savings.
Fro a new laptop. I suggest you contact Dell Computers. I love Dell I use nothing but Dell and always have. They have great laptops that start at fairly low prices. They also have purchase plans and special programs for students aligned with different colleges. The link below will take you to their website.
Dell is familiar with student needs and is fairly easy to get some type of credit program with. Not only does this get you a new laptop; it establishes credit for you so in 4 to 6 months you can apply for a regular credit card.
There is an old saying that one must crawl before they walk. When it comes to establishing credit this say is very true. Establish a line of credit with dell. Make payments on time for 4 to six months and you will have established a credit value.
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