When it comes to money, we have to embarrassingly admit that we’re probably not saving enough. Whether you’re in a ‘treat yourself’ mode or aren’t paying too close of attention to your budget, we decided to get our questions answered by the founder and certified financial planner of Greenway Wealth Advisors, Nick Foy.
Foy discusses everything from how much you should save at age 25, 35 and above, when you should start using a credit card to how to plan for your future, and more. Tune in below…
For those not familiar with financial planning, what’s a good first step to get going in the right direction?
For young folks that are listening, think of everything in terms of percentages. If you could start early and saving 10-15% of your paycheck, and setting it aside, and not spending it, then you can continue that habit, no matter how much you are spending. For the most part, you’ll probably be pretty well off. The earlier you start, the better you’ll be.
How can you keep track of your spending besides an app?
The old school method is the envelope system. Our grandmothers might have done this back in the day. Once you get a pay check, turn as much as you can into cash as you can and set it aside into very specific amounts into specific envelopes. That way, you basically guarantee yourself to not spend more than you should be in a category.
Is saving enough or when should you start investing?
I like to think of saving as those amounts that remain in cash and are typically say 3-6 months of emergency expenses. Anything beyond that is called cash drag, where you’re dragging down the overall potential value of your net worth, by leaving too much in cash. It ultimately isn’t probably yielding that much.
The CharlotteFive Podcast — presented by The Charlotte Observer and powered by OrthoCarolina — is a weekly podcast that aims to get you Charlotte Smart, Fast with fun, interesting and useful news about the city. It’s co-hosted by Sean Clark-Weis and Sallie Funderburk and is a production of the Charlotte Observer and Brian Baltosiewich.
Cover image via greenwayhealth on Instagram