The U.S. savings rate dropped to a 10-year-low in September, according to the Commerce Department, underlying the need for 401(k)s and savings.
Continue Reading Below
If you are a millennial, looking for ways to stash your cash away for a rainy day, attacking debt opens the door to saving for retirement, financial expert Chris Hogan told FOX Business’s Maria Bartiromo.
According to Hogan, people are spending 24% of their income on consumer debt such as credit cards, car loans and student loans. Once out of debt, the first step to saving is to start an emergency fund.
“Three to six months of expenses tucked away so if life does happen—a job loss or illness—you’ve got a cushion between you and life happening,” Hogan said on “Mornings with Maria.”
Once you’ve built your nest egg, move into investing, Hogan said.
“[Put] fifteen percent of your household income into Roth 401(k)s or 401(k)s or IRAs to start to prepare for the future,” he said.