Q: Should I save first or pay down debt?

A: This is one of the most frequently asked questions. The answer will vary according to your situation. However, I generally suggest establishing some level of savings (even as little as $500) before accelerating debt payments. Next, you should determine what is ‘good debt’ such as mortgage loans and student loans and what is ‘bad debt’ such as credit card debt. Pay off the high-interest bad debt first and then move on to investing and reducing good debt.

Q: I’m having a hard time saving money. Do you have any ideas or suggestions?

A: Set up automatic transfers into your savings account - out of sight, out of mind. Don’t pay unnecessary fees - late fees, ATM fees, etc. Those small fees can add up over the course of a month. Consider taking your lunch to work if you don’t already. $5/day for lunch at work is $100/mo. That’s not chump change. Cut expenses if possible. Do you really need the super deluxe cable package? With a little creativity, you will be able to increase your savings in no time.