GREENSBORO, N.C. — It's Decision Day! Future college students are choosing where they will spend their next four years. It's a big day and it's an exciting day.
Then reality sets in as students and parents figure out how to pay for it.
“You can always take a loan out for college, but you can never take a loan out for retirement. Oftentimes parents put their children’s needs and finances before their own. We've been left to invest in our own retirement and if we don't do a good job with that, we could run out of money before we run out of time,” said Scott Braddock of Scott Braddock Financial.
There are a lot of financial aid opportunities for college, but there are no scholarships or grants for retirement.
Saving money is always an issue because it always seems there is some urgent life need. Braddock says you need to trick yourself and save without showing yourself the money first.
“What I've seen work really well with the folks I work with for retirement, is when they have a certain amount of money withheld from their paycheck. So, it's already set, in place and they don't even see it,” said Braddock.
The direct deposit into retirement, regular savings, a Christmas fund, or whatever really works because you learn to live on the money you have left in your checking account.
Braddock says, the one thing everyone needs to do, is have a working budget, so you know where you want your money to go.
GET A BUDGET IN PLACE
- Check your bank accounts for spending habits and take a look at the debt you owe
- Make a list and keep track of your balances, interest rates, and payment due dates to make sure you’re not racking up any unnecessary fees.
- Add up your income and if your budget shows you are spending more than you make, cut back.
- Track both your income and expenses in a budgeting app or spreadsheet.