A Little Saving Can Go a Long Way, Oakdale Expert Says

In this installment of Oakdale Patch's series on keeping New Year's resolutions, we're talking about finances. Truth be told, I don't pay much attention to mine, so talking to Ben Hess at Wealth Enhancement Group was enlightening. In this rough economy, when many people are out of work or underemployed, it is even more critical that we stay on top of our finances. How to do it is something that can be overwhelming, but with the right financial advisor it doesn't have to be so challenging.

Oakdale Patch: What should a person look for when hiring a financial planner?
Ben Hess: The first thing you should look for when hiring a financial planner is trust. Do you trust the person who will be handling your money? If the answer is no, then find someone else. Ideally, you want to work with someone with integrity. You want to find the right fit as well. How does the advisor get paid? If he is paid on commission he will likely be there for you when he wants to sell you another product. If he or she is paid a fee, then you have a partner in controlling your finances. Other questions to ask are how often you will meet with this person, and what kind of services do they provide?

Oakdale Patch: What are some steps people can take to save more money?
Hess: The single best thing anyone can do to save money is to have it automatically deducted from their paycheck and put into a savings or growth account. If you don't see it, you won't miss it. If you don't have it automatically deducted, you might be tempted to use it for something else and it won't make it to savings. Saving $25 a month can really add up over the years, so even if you can't save much right now, something is better than nothing.

Oakdale Patch: What percentage of income should a person save each pay period?
Hess: That really depends on the age of the person, their income and a host of other factors, but generally speaking 10 to 20 percent of your income should go into savings for retirement. For short-term goals, a person should put away between 4 and 5 percent.

Oakdale Patch: What resources are available to people who want to start saving money?
Hess: The Internet is filled with great sites on managing your money, so start with Bankrate.com and Smartmoney.com. Both are great resources. I also recommend Bruce Helmer's book "Money and the People you Love" because it is written in plain English that everyone can understand, and it has sound information in it. Bruce also hosts a radio show called Your Money on WCCO, which has a wealth of information.