What is an easy way to save money?

Leaving home at 18, what's the best way to save money in your opinion and advice please?

• I didn't know what section to put this in, sorry if this is kind of in the wrong place. I plan on leaving home as soon as I turn 18 which is in September 2011. I'd preferably like to leave between September and December but since I'm going to 6th form college at the school I'm in now, and it doesn't end until July/August 2012, it'll be about 28 months from now. I don't want to move, like, practically down the road from my family or anything, I want to leave the city altogether (I live in Liverpool). I've started saving money now, I have a high interest savings account which increases with 4% interest (as long as I add £20) per month, and I plan on closing the account and transferring the money to my current account (or whatever you do) when I'm 18 so I can use the money to leave. I set it up last month, there's currently £150 in there. I'm staying on at 6th form college in September this year too, and I'll be paid roughly £30 a week (about £120 per month, £20+ will be transferred to the high interest account monthly). I don't plan on spending any money unnecessarily either except to buy things I need (i.e. 6th form equipment). I don't know how much money I'll have by the time I'm 18 but I'll figure it out nearer the time. I'll be getting a weekend job as well and I have the same intentions for that money too. So I just wanted some advice about how to go about it so I can plan ahead. What other things should I think about and make in preparations? And does anyone have any ideas about how I should do everything? I've considered university after 6th form and I kind of like the idea sometimes, but I don't really think it's for me at the end of the day.

• Answer:

  Your local library will have soem helpful books on personal finance - the "Idiots" and "Dummies" guides can give you a simple introduction, and authors like Suze Orman, David Bach, and David Ramsey all offer similar sage advice. First you need to create a budget, and to do that you'll need to know what you income and expenses are. 100 a month is barely enough enough to live on once you have to start paying your expenses. Taxes usually take 15-25% of your income, and rent takes another 25-33%. It's terrific that you're putting into a savings account - that's a crucial need that many people overlook. Don't forget about saving for long-term (retirement, mortgage) as well as short-term goals (education, auto, vacations). You'll need to budget for essentials - food, transportation, medical insurance, utilities (electricity, gas, etc). You'll also need a discretionary fund for other things - clothing, hobbies, travel, charity. Figure out NOW what those costs are in your area for your style of living. Then you'll know if you need to earn more to survive, or if you can afford some little luxuries.