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Where they are now: Carlos and Maria are newlyweds with very
little money to spare. Maria is a schoolteacher
and Carlos is a construction worker who
plans to become an independent contractor
in a few years, running his own business.
They know they want to buy a home and
start a family, but every month, something
comes up that prevents them from putting
money aside. They haven't even thought
about their retirement or how the addition
of children will impede their ability to save.
They are hopeful that once Carlos' business
gets started it will provide the extra income
they need to invest for retirement.
What they might do differently:It's important that Carlos and Maria begin putting money aside right away. As hard as it is to invest today, it will become even harder to reach their goals without giving their investments the opportunity to grow over time. Instead of focusing on the total amount they'll need in the future, it may be easier to zero in on how much they can put aside each week. Evaluating their expenses and scaling back is the first step. Can they forego eating out once a week or rent a movie once in a while? Once they figure out how to shave down their expenses, the next step is to commit to actually setting aside that money. Contacting an investment company to set up an account and automatic investment plan is a great way to start. Also, as they get raises, they can increase the amount of their monthly contributions to their plan. |
