Stashin' Cash: How to start saving | News
By Cyreia Sandlin - email
SAVANNAH, GA (WTOC) - Do you have a problem saving money? You're not alone, and there are several steps you can take to start putting money away for the future.
Jody McGovern, of Wells Fargo Advisors in Savannah, deals with clients every day who want to put money away for the future. She said that saving in this economy can be tough.
"A lot of people are underwater with their homes and the price of food has gone up, gas has gone up, and wages just haven't."
The most important thing she says you can do is start putting away three months of living expenses for you and your family.
Next, prioritize your goals.
"You put your dreams down, your wants down, your needs down," she said.
For many families, owning a home, sending their kids to college, and being able to retire rank high on the list. If you want to own a house, McGovern said it should not be about making money later.
"Your attitude should not be going in it to make money, sell it, and get into another one. You're going in it to make a home," she said.
Then comes the big debate, saving for college or saving for retirement.
McGovern recommended saving for retirement first, but not everyone agrees. Angie Mohr, an accountant, financial writer, and mother of two, disagrees.
"If you're a family that's struggling, then having a child graduate from college is the best way to stop that generational problem," Mohr said.
However, both agree that it's never too early to start saving for your child's education, and there's several options out there for doing so. One of the most popular options is a 529 plan.
As for retirement, McGovern urges people to advantage of their employer's 401(k) options.
Lastly, if all of this seems overwhelming, just remember it is possible. McGovern added that a little sacrifice can go a long way.
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