| Hi Taylor:
My husband and I are trying to figure out some savings goals for the
future and don't really know where to start. House, retirement, new
car, rainy day fund, etc. Any guidance? - Marie
Hi Marie: Love this question! As one half of The Money Couple,
helping married people figure out how to live their best financial
lives is a big part of the work I do with my wife. While everyone
has a different situation and different needs, there are some universal
steps we can all take.
fund. If you don't have a cushion of some sort, you have to
start there. Save up enough to cover a few months of living expenses
so you don't take on a bunch of debt when something unexpected
happens. People skip this step all the time and it almost always
comes back to bite them. If you have a safety net in place, something
like a layoff or a rough economic patch won't blow up all your
If you have a 401(k) through work, that's fine but it's not really
enough. An IRA is another way to go! Once you get into the swing
of putting money away for retirement, it won't seem like a huge
savings goal as much as a manageable monthly amount. It's really
important to start now and get in the habit of maxing out that
IRA every year so your money can grow and you don't have to worry
about it when you get older and start thinking about your post-job
life. Cars, houses, and vacations are all more alluring when you
start saving for the first time, but those retirement funds should
be a top priority.
3. House. You don't have to buy a house. If renting makes
sense for you and your current situation, and you've got your
savings and are stashing away for retirement, that's okay. At
the same time, you might be able to save for a down payment and
then pay a mortgage that's not much more than your current rent.
Perhaps more importantly, just opening up the discussion of saving
for a house can answer a lot of questions about your future. Do
you want to stay where you are? Do you want to keep renting and
buy a vacation house that you can rent out? Do you want a home
so you can start a family (which leads to a lot of other savings
questions)? Even if you don't buy a home, those questions are
worth your consideration.
| You might have
to start with some smaller goals than you had hoped, but it's all
part of the process. Make sure you're setting yourself up for success,
and the rest of the pieces will fall into place. Good luck!
© Taylor Kovar
July 1, 2022
More "Go Far With Kovar"
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an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
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