Linda Stroman: My name is Linda Stroman and I'm the Financial Education Coordinator of Capital Area Asset Builders and this video that we’re shooting is about how to get out of debt.
This particular segment is about why savings is so important in a process of getting out of debt. And we’re going to talk about why savings is important? Why is it important to establish an emergency fund? How can I build it in to my budge and overall why we need to use savings to pay of debt?
Host: Why is savings so important when talking about debt management?
Linda Stroman: Saving should be an extra special piece of your budgeting. It should be also treated as an expense basically because we want to save for emergency. We want to save for periodic increases in our debt such as rent, such as mortgage payments and things like that.
We also for the joys of life, the things that we want to do versus the things that we need to do and again, for retirement because retirement is important. Sometimes, we don’t think about it when we’re younger, but we need to start saving for retirement as well. So, we need to incorporate that into our budget so that we can make that something that we do on a regular basis.
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