Jade Warshaw, master financial coach at Ramsey Solutions, offers some tips on how to save better. 


<div class="block">Jade Warshaw, master financial coach at Ramsey Solutions, offers some tips on how to save better. </div>
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Stretching Your Dollar

Expert Tips for How to Better Save Money and Build Wealth 

Welcome back to stretching your dollar here on Shetter news. Well, according to bank rates, emergency savings report, nearly three in five Americans don't have enough savings to cover three months of expenses. 57% are uncomfortable with their current level of emergency fund. Meanwhile, the US savings rate remains below its historical average with the current seasonally adjusted annual rate of 4.6% in February. That's savings as a portion of your disposable income. And it does compare to the average annual rate of more than 8% going back since 1959. Well, joining me now is an expert, Jade Warshaw Ramsey Solutions, master financial coach and co host of the Ramsey Show Jay. Thank you. Thank you for having me. All right. So let's dive in what viewers need to know before opening a savings account. Well, the thing about opening a savings account is you want to put it some place where you can get to it. So it's liquid, but you also want it far away from your normal funds away from your checking account. So we would suggest a high yield savings account, something like that in this environment. I know, some of these high yield savings accounts are offering a nice rewards. 5%. Can you get that much in a high savings account? That's right. Some of the online high yield savings accounts you can get upwards of 4 5%. These are online banks, they are not brick and mortar locations and so they have the ability to offer those higher interest rates. Ok. So high yield savings accounts are one. What about how do those factor in? You know, we do recommend getting your investment started as early as possible, but we want you to pay off your debt and have 3 to 6 months before you do that. And when you are ready to invest, we suggest mutual funds. I'm not mad at exchange traded funds and if people want to go to them, that's fine. But just know these are traded like stocks and so you have the ability to buy and sell them each day, which for a lot of people who are skittish, they are tempted to jump in and out of the market with those, which is why we really suggest mutual funds and working with an investment advisor. Ok, great. So it sounds like paying off debt boosting that emergency savings fund. And then what about a 401k 401 Ks are great. Um The solution that we have for that is if you have a match with your 401k start there and then you can move to something like a Roth Ira and fully fund that. So it's match. Beats Roth beats traditional. What about Robo investors? There's been so much hype around A I this year is a Robo investor trustworthy. I would never use a Robo investor. I want somebody who's breathing, who can help me learn. We want you to work with somebody who has the heart of the teacher so that you understand what you're investing in and you understand how your money is being used. I like that. Ok? Diversification is kind of the age old word, right? We've heard when it comes to investing. So what our viewers need to know about that, you know, we want you to spread your eggs out over all sorts of baskets. Do not put your, all of your eggs in one basket. So we would say spread them across mutual funds, growth, growth in income, aggressive growth and international is what we're looking for. Ok. Very good to know that people who are close to retirement, let's say in their forties, maybe they don't have as much saved as they would like to. What advice would you give them if they're just getting started in their forties? Yeah. You know, it's not too late. I got started investing on late into my thirties. It is not too late. You've still got 2025 working years to let compound interest work in your favor. But again, it's getting that debt paid off getting that savings and then start investing 15% of your monthly income. Ok. Know financial products that people should know about. What are they? I go probably with an HS a health savings account. It's, you need to have a high deductible insurance in order to have one. But it's triple tax advantage. You can put in pre tax dollars. You have the ability to have that money grow tax free in investments if you want. And of course, you're using that tax free for qualified medical expenses. So if you're a parent, how do you help get your kids? Your Children started on the right path. Maybe you even want to save some money for them and their own goals. Yeah, that's listed as part of our baby steps. We've got a seven baby step plan that walks you through all of those important milestones and baby step five is saving for kids college. We would suggest an ES A or 5 29 account. Um and that's where you would get started with. What is an A A, an E A? It's, it's an education savings account and it's just a great way that you can suck that money away. There are limits to it. So you want to make sure to work with your financial advisor to understand those limits. Ok, Jade, thank you so much for joining. You're very welcome. Thanks for having me. We got our green thing going on. So helping our viewers make a lot of green, save a lot of green. That's right. Get that money. Thank you so much. Thanks for having me. All right. So as we reported on updates coming to financial aid, college tuition is skyrocketing and average wages are just simply not keeping up. That's according to a recent study from Georgetown University, Gloria explains what is causing the sharp increases and what you can do about it.