Saving strategies for good financial health

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Wednesday, Feb. 5, 2014 ■ Old Colony Memorial ■ wickedlocalplymouth.com
HEALTHYLIVING
A BETTER YOU THROUGH BETTER LIVING 2014
FINANCIAL
Saving strategies for good financial health
By Kellie K. Speed
Correspondent
A
re your finances in
decent shape? If you
are unsure about the
answer to this question, it’s
time to start planning now to
ensure a comfortable financial
future.
One of the best ways to begin saving is through systematic withdrawals to a
checking or savings account.
“It is the best way to start
saving,” Jim Lively, chief executive officer and president
of Bridgewater Savings Bank
in Raynham, said. “If you can
Whether saving for a child’s education or retirement, the most important aspect of
saving is to make it habitual, according to Jason Lilly, director of portfolio management
at Rockland Trust. PHOTO COURTESY OF METRO
start by having 10 percent of
your income sent to a savings
account, that is a great way to
get started. It’s important to
have a target. What do you
need? If you have a goal, that
tends to spur people to start
saving. Our employees can
save through a 401K plan,
which is a great way to save
money that can be used later
to buy a house, pay for education or health purposes.”
Jeannette Travaline, director of marketing at Braintree Co-op Bank, agrees that
direct deposit of a certain allocated amount into a savings
account seems to work best
for most people.
“When it comes to saving,
it’s important to do as much
as you can starting as soon as
you can,” she said. “Don’t impulse spend. Invest in a 401K
as much as you can but at the
least as much as your company will match. If you are
young, you can invest in more
aggressive funds like the stock
market, which will historically come back. If you don’t
have a lot of money to invest,
put it in different savings
venues. I have found that if
people don’t see the money,
they won’t spend it. If it is taken out before they get it, it
seems to work better for people.”
For parents, planning for
college can be an overwhelming experience without some serious preparation.
“When parents ask, ‘How
do I save for my children’s college?’ start early, the sooner,
the better.” Mansfield resi-
dent Bruce Rubin, financial
representative for John Hancock Financial Network in
Warwick, R.I., said. “If you
can, have automatic payments
made directly to this account.
Increase your contribution
as your income rises. Encourage family members to
give to your child’s special
days. Turn to the grandparents. They understand the
difficulty saving for further
education, most likely having
done this prior.”
Most employers offer taxdeferred savings plans, which
can be one of the most effective ways to get started planning for a secure financial
future.
“Pretax savings are great,
and if your employer matches contributions on a 401K
that’s even better,” Jason Lilly, director of portfolio management at Rockland Trust,
said. “You can save a maximum of $17,500 each year. Financial planners can get into
the minutiae of things, but I
like to keep it simple. I look at
the big picture and the things
that people have to pay every
month and see if there is
some wiggle room. The most
important aspect of savings is
to make it habitual. Don’t
get overwhelmed with the
idea that you have to save
for retirement and reduce
your debt. Focus on small
steps and just one thing at a
time. I try to focus on building good habits and a plan
that works consistently.”
Judy Brazil, senior vice
president of marketing for
Quincy Credit Union, believes
managing money is a balancing act.
“It’s not always easy to take
control of your finances,” she
said. “Part of the commitment to promote healthy savings habits, Quincy Credit
Union offers a complimentary Financial Fitness Program
free to its accountholders. To
help to balance your spending, track spending. It’s amazing how the little things can
add up. Ask your financial institution if they offer free online financial management
tools like Finance Works from
Intuit. Establish goals – short
range, mid-range, long-range.
For example, a vacation might
be a short-term goal, but buying a house or getting married
may be a mid-range goal, and
retirement or a child’s education may be a long-term
goal. Each of these financial
spending goals will require
pre-planning. Create a spending and savings plan. The key
to a successful spending plan
or savings plan is to stick to it
and reevaluate it on a regular
basis.
“Set aside key times of year
for spending like holidays
and vacations as well as planning for large expenses like
new cars, and home improvements. Use credit wisely. If used carefully, credit
can be a helpful financial
tool. However, credit can be
expensive. Be sure to check
interest rates, finance charges,
fees and penalties before applying for credit. It will pay to
do your homework when it
comes to applying for a loan
or credit card.”