Pay yourself first when it comes to savings, retirement - New York News

Pay yourself first when it comes to savings, retirement

Posted: Updated:
ATLANTA -

Financial planning is more important than it's ever been. There are fears that Social Security won't be there when you need it, and companies rarely offer pensions anymore.

So, what is the golden rule of financial planning? Start early, and pay yourself first.

According to the financial planning group Oxygen Financial, pay yourself first means when you get paid, first take out money for savings and your 401K. Once that's done, pay your bills. Then, what is left over is your spending money. If you've paid your bills and had some fun, but don't have enough for savings, then you need to cut back on the fun.

"A scary trend we're seeing here in Atlanta, whether you earn $50,000 or make $300,000, more and more Atlanta families are living paycheck to paycheck," said Van Pappas of Oxygen Financial.

Sandra Gibson lives comfortably in retirement because she has always followed this basic rule to secure her financial future, and she's passed that great advice along to her daughter who has listened.

Pay yourself first is new to Tyler Robertson too, but he likes the sound of it.

"I would do that, most definitely. But it would have to be after college," said Robertson.

How important is it to start saving early? Let's say you are 25 years old.  You invest in your 401K only $2,000 a year for 10 years then you stop.  Now, let's say you are 35 and you contribute the same amount every year until you are 65 years old.  The 25-year-old has more money at retirement.

  • I-Team Story ArchiveMore>>

  • 3 easy options for checking your credit score

    3 easy options for checking your credit score

    Friday, August 22 2014 8:47 AM EDT2014-08-22 12:47:59 GMT
    Everybody is entitled to a once-a-year free credit report. But, it's always been a little confusing because if you wanted your credit score that goes with it then you had to pay. There are options out there.
    Everybody is entitled to a once-a-year free credit report. But, it's always been a little confusing because if you wanted your credit score that goes with it then you had to pay. There are options out there.
  • Dr. Commander cries on witness stand

    Dr. Commander cries on witness stand

    Thursday, August 21 2014 10:12 PM EDT2014-08-22 02:12:43 GMT
    The man who claims to have thousands of Hindu followers around the world took the witness stand in his federal money laundering trial and broke down in tears.
    The man who claims to have thousands of Hindu followers around the world took the witness stand in his federal money laundering trial and broke down in tears.
  • Developer: Kenerly never asked for bribe

    Developer: Kenerly never asked for bribe

    Wednesday, August 20 2014 10:18 PM EDT2014-08-21 02:18:28 GMT
    Prosecutors considered him their key witness, a longtime Gwinnett developer given immunity to spill what he knew about corruption inside county government. David Jenkins testified before a Gwinnett grand jury in 2010. He also met multiple times with prosecutors. Those interviews were videotaped. Four years later, prosecutors agreed to a no contest plea bargain with former commissioner Kevin Kenerly on one count of bribery. He will serve 10 years on probation and pay a $10,000 fine.
    Prosecutors considered him their key witness, a longtime Gwinnett developer given immunity to spill what he knew about corruption inside county government. David Jenkins testified before a Gwinnett grand jury in 2010. He also met multiple times with prosecutors. Those interviews were videotaped. Four years later, prosecutors agreed to a no contest plea bargain with former commissioner Kevin Kenerly on one count of bribery. He will serve 10 years on probation and pay a $10,000 fine.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices