By Sandra Block, From Kiplinger's Personal Finance
Saving for long-term goals tends to take a
back seat to expenses such as child care, groceries and health
insurance. And if you’re also paying off debt, saving for retirement and
college may get pushed to the curb.
But putting off saving for retirement
until you’re debt-free could cost you the most valuable asset you have:
time. Thanks to the magic of compounding, even small contributions to a
401(k) or similar retirement plan
will grow significantly, especially if your company matches
contributions. If you can’t come up with enough money to hit the annual
limits, or even close to them, “at least contribute enough to get the
match,” says Sheryl Garrett, founder of the Garrett Planning Network.
Saving for college isn’t as pressing as saving for retirement or paying off credit card debt, says financial
planner in Charlotte, N.C. “It’s nice if you’re able to save something
for your children’s education, but the biggest priority should be taking
care of your needs. You can’t borrow for retirement. You can for
college.” As for getting rid of the credit card debt, “I think that
trumps saving for education.”
Cheryl Sherrard, a certified
To free up more money for savings, pore over your expenses for ways to cut; look at how much you pay for your cell-phone plan, cable package and restaurant meals. Use the extra money to “really attack your debt. Go at it with guns blazing,” says Garrett.
will grow significantly, especially if your company matches
contributions. If you can’t come up with enough money to hit the annual
limits, or even close to them, “at least contribute enough to get the
match,” says Sheryl Garrett, founder of the Garrett Planning Network.Saving for college isn’t as pressing as saving for retirement or paying off credit card debt, says financial
planner in Charlotte, N.C. “It’s nice if you’re able to save something
for your children’s education, but the biggest priority should be taking
care of your needs. You can’t borrow for retirement. You can for
college.” As for getting rid of the credit card debt, “I think that
trumps saving for education.”To free up more money for savings, pore over your expenses for ways to cut; look at how much you pay for your cell-phone plan, cable package and restaurant meals. Use the extra money to “really attack your debt. Go at it with guns blazing,” says Garrett.
Prioritize your debts. Start with credit card debt, which you should pay off as quickly as possible. Paying off a card with an 18% interest rate
is the equivalent of earning an 18% return. Be wary of transferring
your balance to a card carrying 0% interest, says Garrett. Ask yourself
whether you’ll have the discipline or ability to pay off the balance
before the rate goes up; if not, you’re back where you started. “The
only way I’d advise people to switch to a 0% or teaser rate is if they
have a plan to truly attack the debt and get it paid off by the end of
that term.”
is the equivalent of earning an 18% return. Be wary of transferring
your balance to a card carrying 0% interest, says Garrett. Ask yourself
whether you’ll have the discipline or ability to pay off the balance
before the rate goes up; if not, you’re back where you started. “The
only way I’d advise people to switch to a 0% or teaser rate is if they
have a plan to truly attack the debt and get it paid off by the end of
that term.” 
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