Page 12 - aruba-today-20220913

A12 business
Tuesday 13 sepTember 2022

How to balance competing savings

goals

cently moved with his fam-
ily to that area from Michi-
gan, and his near-term
goal is to save up to buy
a home there. The pan-
demic spurred many peo-
ple to make major lifestyle
changes, he says, and as
a result their near-term sav-
ings goals shifted.
"Sometimes we reset ex-
pectations and sometimes
we achieve more than we
thought," he says. It's im-
portant to check in on your
In this April 3, 2019, file photo a tip box is filled with U.S. currency savings progress at least
in New York. several times a year so
Associated Press you can recalibrate when
needed.
By KIMBERLY PALMER of nancial planner and owner Jay Zigmont, CFP and
NerdWallet of Aquila Wealth Advisors in founder of Childfree Wealth
Saving money sounds San Luis Obispo, California. in Water Valley, Mississippi,
straightforward — set cash "It's good fundamentals works with clients who don't
aside for a future purpose to have cash in case stuff have and aren't planning
— but in reality, people of- starts costing more." on having children. He says
ten face competing sav- NEXT, PRIORITIZE RETIRE- many of them are focused
ings priorities. We want it MENT on major life shifts, such as
all: the travel, the house, "Retirement is a long-term starting a business, moving
the flush savings account. game and time is on your overseas, traveling or tak-
So how do we figure out side, so even if you start ing a sabbatical from work.
which savings goals to put with something very small, "You might not be able to
first, especially when we're the more time you give do everything at once, but
working toward so many yourself to work on it, the you can do most things
things at once? better off you'll be," Jones over time," Zigmont says.
"You're also still trying to live says. "If you keep pushing STAY ORGANIZED
and have fun and not eat retirement off, we blink and To keep all of these goals
ramen noodles every day," now we're scrambling." straight, Maldonado sug-
says Al-Nesha Jones, a cer- Thinking through the worst- gests opening a separate
tified public accountant case scenarios of not sav- savings account for each
and founder of ASE Group, ing for different goals can one and giving it a nick-
a full-service accounting, help underscore the impor- name, such as "Greece,
tax and advisory firm in tance of funding retirement $5,000" or "Lake cabin rent-
West Orange, New Jersey. accounts. Noah Damsky, al, $1,500."
Saving is further complicat- principal of Marina Wealth Online, high-yield savings
ed by the fact that we're Advisors in Los Angeles, accounts tend to offer
currently facing economic says you should save for higher returns than those
uncertainty, higher prices the categories with the at traditional banks, and
on everyday items and a most severe consequences you can set up automat-
tumultuous stock market. first — and retirement tops ic deductions from your
Figuring out your savings that list, since no one wants checking account or pay-
priorities isn't easy, but to be impoverished in old check. "It's positive inertia
these strategies can act as age. "Running through that keeps the money go-
guideposts: those scenarios helps crys- ing where you want it," he
PUT YOUR EMERGENCY tallize what's important," adds.
FUND FIRST Damsky says. You can always make
Consider how you felt the DECIDE WHAT YOU WANT IN changes later. "Just get in
last time you couldn't cover THE NEAR TERM the habit of saving, and
an emergency, Jones says. This next category of sav- then you can go back and
"If it gave you major anxi- ings priorities is compli- add other goals," Jones
ety, keep that feeling in cated, because you must says.
mind when you prioritize." determine your near-term ENJOY LIFE ALONG THE
In other words, create your goals. They might include WAY
emergency fund before buying a home, traveling, As important as it is to save
everything else, because moving to a new city, start- for all of those priorities,
it's so critical to financial ing a family or something so is enjoying life today.
security. "Now more than else entirely. Don't wait until you have a
ever, people are under- Dale L. Shafer II, CFP and fully funded retirement to
standing the importance of founder of Life Moves put money toward items
a rainy day fund," says Eric Wealth Management in that bring you joy, Jones
Maldonado, certified fi- Scottsdale, Arizona, re- warns.q