Ways to start saving money for a better future and a bigger bank account

Published: Sep. 1, 2022 at 10:38 PM CDT
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SHERMAN, Texas (KXII) - Asa Jessee has been a financial advisor for 12 years, so he knows a thing or two about managing money.

Jessee said, “A lot people come in, they have a lot of goals. Buying a house, buying a car, saving for retirement, saving for education.”

However, Jessee said so many people get wrapped up with their day to day lives, that they forget one thing.

“And that’s preparing for the unexpected.” Jessee explained.

He suggests taking the Warren Buffett approach, which is planning your finances in a way that will benefit your future, as opposed to only concentrating on your current financial situation.

He said, “A lot of people look at all of their expenses, and they add them up, and they decide how much they need to save, and he says that’s all backwards, that what we need to do is figure out how much we need to save, and then that’s how much we have to spend.”

And the best way to implement this plan with your income?

According to Jessee, “Take 30 percent, figure out where that goes, savings wise, charities, church, whatever, and then figure out how to live on the 70 percent.”

But what if you’re like most Americans, living paycheck to paycheck?

Jessee said its okay to start off by saving what you can, even if that’s a small amount.

He explained himself saying, “Take that amount, whatever it is, 5 dollars, 10 dollars, whatever you can do and start saving that... then start figuring out how to build from there.”

You may not be rich in savings overnight, but it’s a start.