Wants vs. needs, saving for the future

Posted at 11:06 AM, Feb 01, 2016
and last updated 2016-02-01 14:06:42-05

When it comes to budgeting, people must decide what is essential and what money they can put to better use.

Sherod Waite, Financial Advisor with The Moneywise Guys, says there's a few easy ways you can take that money from little things like a cup of coffee every day and turn it into a vacation.

Waite said a way to create savings is very similar to getting a tax return, all you have to do is create a savings account with your bank where a sum is deposited automatically each month. This is easy to set up, and you don't have to think about it as time progresses.

Another way to save is on big ticket items, like your car. The saying goes that you lose thousands as soon as you drive a brand new car off the lot, and that's why Waite says you should buy a reliable car that's a couple years old.

"Cars are built very well these days, you can get a really nice car that's just a few years old and save a lot of money and yet people will go for that new car smell or whatever, and most people can't afford a new car," Waite said.

Waite said you should also hang on to your car as long as you can. Some are concerned there will be upkeep costs, but some fail to think of that comparative to the cost of a new monthly car payment.

Lastly, another easy way to save money is to not go out to eat as often, that includes fast food. Waite says families think they save money when they eat fast food but argues eating at home is healthier and cheaper.

Some take the money they save from not eating out and put that money each month into a savings account for future expenses.

That's your Moneywise Minute! Happy Savings!