Saving up those pennies

Moose Jaw - What can Moose Javians do to save money and meet their financial goals with worries of a recession and tough economic times ahead?
Faye Carlson, a Gold Key Investments certified financial planner, said the keys to meeting financial goals during tough economic times is the same as during good economic times - spend responsibly, save wherever possible and avoid relying on high-interest credit.
She said a person should always put money into savings as soon as he or she gets paid. Such investing is important for those planning to retire, as well as saving for items such as vacations or new vehicles.
However, among the reasons a person saves, Carlson said it's important to put money away in case of an emergency. If hard economic times lead to someone losing his or her job, the local financial planner suggests putting away the equivalent of three- to six-months pay beforehand (in an emergency account) to last while unemployed.
Whether the economy is good or in a recession, Carlson said individuals should start saving as early as possible in life. She added the mistake many people make is to think they'll start saving once they get paid more money, when actually the amount of disposable income stays about the same for people throughout their lives (because with higher wages comes more expenses).
In order to put cash away into long-term investments and other savings accounts, Carlson said the best way to start is with small amounts - perhaps $25 at first and increasing that amount as the investor gets used to budgeting without that extra cash.
What a person absolutely doesn't want to do during tough economic times (or any time for that matter) is rely heavily on credit cards. Carlson said a person should only use a credit card if he or she can pay off the entire bill every month to ensure there's no high-interest payments.
She added many people get into financial trouble when they spend a lot of money on credit and then can only afford to make minimum payments, which doesn't cover the interest. For those already in a credit crunch, Carlson suggests cutting up the cards and forging a plan to increase payments to a level where they can eventually get rid of their debt.
As for putting some savings away in long-term, retirement investments, Carlson said the market is in a downturn, so now is actually a good time to buy, because market prices are low and investments tend to increase on a long enough time scale.

Carter Haydu can be reached at 691-1265.