Here are actionable steps you can take if you’re trying to save up for a major purchase, according to a top personal finance expert.
Transcript:
CONWAY GITTENS: What are your tips on saving for a major purchase, like a house or a car?
SHANNON MCLAY: Yeah, I think the first thing is don’t be scared about the big numbers because I think it’s something greater than 70% of Americans live paycheck to paycheck. So the thought of saving up $100,000 to buy a home feels like forget it. Like why even start. And I always say the process to get financially healthy, as you can imagine. Conway, we love fitness analogies here. So we say the process of getting financially healthy is like running a marathon. So if you decide to run a marathon today, you’re not going to run 20 plus miles today. You’re going to do training, you’re going to do a little bit at a time, and then you’re going to build up. And at some point you’ll run a little bit. You’ll take a break, you run a little bit more.
And so, you know, I’d say again, back to the mindset is realize it’s a big goal buying a house, starting a business, having children. Those are all big money goals. And when you start to lay out the numbers, it could freak people out. So I’d say first realize that, you know, it’s going to take time and a process. Know what the number is, though, because we need to know what we’re working towards. SMART goals are everything, so we need to know how much the house costs, how much the business will cost, how much retirement will cost, and then start putting the pieces together to get to those numbers.
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