In an article that appeared in Dallas News, Wes Moss gives his tips on spending and saving for consumers. Some consumers may resolve to use their credit cards less, but they apparently are in the minority among Americans: Consumer debt is climbing at the fastest pace in more than five years, and student loan debt continues to escalate.
Wes Moss gives his perspective about spending and saving by telling clients to spend 30 percent of their incomes on taxes, put 20 percent into savings and live on 50 percent. Moss says we’re best off setting broad financial parameters.
“To retire comfortably, you need to live off just half the money you earn,” Moss said.
To stretch those dollars within your plan — and keep your options open — the experts share some unexpected ways to save.
Medicine: Slice pharmacy co-payments by one-third, said Mike DeAngelis, director of public relations of CVS Pharmacy, by filling a prescription once for 90 days instead of three times for 30 days.
Housing: Forget mortgage calculators that suggest 30 percent of your income go to housing, Moss said. “That’s a dangerous path,” he said. Instead, save money by buying a cheaper house.
Mortgages: Think — and really think — about how long you plan to own your home, said Neil Stein, a home lending officer at Citibank in Boca Raton, Fla. If a job, school or another circumstance has you there more than 10 years, get out of your short-term loan in favor of a longer-term product, saving yourself from being at the mercy of future rates. On the other hand, if you’re planning to move or pay off your loan in the next five years, choose a short-term product. Finally, if you’re in a 30-year fixed mortgage but you qualify for a 15-year loan, take it, Stein said. The rates are lower, and you’ll pay the debt off sooner.
Read the full article: Dallas News