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Finances can be a little difficult to navigate at times. Situations are not always certain and there is no guarantee that a person will be in the same financial position years later. Therefore, it is important to think long-term and to plan accordingly. Financial debt does not usually disappear and can take years to tackle. Saving for the future also takes time but should be done by everyone. As the saying goes, “Money speaks only one language, ‘If you save me today, I will save you tomorrow'”.


A person’s approach to their finances will be specific to their personal situation. It is best for an individual to build up an amount of savings that they are comfortable with while balancing debt payments. The amount that a person places in their savings will depend on their lifestyle and expenses. However, a common rule of thumb, according to ‘Dave Ramsey’s Baby Steps’, is to initially have at least $1,000 saved before attacking any financial debt. If the individual can afford it, while paying off debt, they can then save money for retirement or emergencies. It is also important for a person to assess whether or not there are financial opportunities that will provide a greater return on investment than the interest owed on their debt.


The decision to save for retirement or pay off any remaining debt is completely up to the individual making the decision. Ideally, it would be best to contribute to both causes. However, in some cases it is best to prioritize one financial decision over the other. The best way for a person to approach the decision is to assess their short term and long term goals then develop a plan for reaching those goals. The individual should understand that life happens and things will not always go according to plan, therefore they should factor in some space. With these things in mind the person should then determine if they have more than enough time to save for their retirement while paying off their debt, if they need to pay off their debt immediately, or if they can focus solely on saving for their retirement because the payoff is greater.

Securities offered through Sanctuary Securities, Member FINRA and SIPC. Advisory services offered through Sanctuary Advisors, LLC, an SEC registered investment advisor