Have You Started Saving Too Soon? Have You Paid Off Your Debts First?

I realize this sounds a bit crazy. But for many, saving at all costs means running up credit cards for basic living expenses.

What is wrong with this picture?

Does it do you any good if you have been saving for retirement for decades, only to find out that your debt load is higher than your savings? This really does happen.

Unless your employer is matching your savings -- and even in some cases where they are -- if you are paying for living expenses with credit you, are throwing away more money than you are saving.

We really need to start concentrating on first things first. First, you need to make sure current living expenses are covered. This may mean working more. This may mean looking for more modest living conditions.

Next, you need to pay off all of your debt like your credit card and cars. Credit interest adds up much faster than savings interest. When you are in a position to pay for your current expenses, and you have no credit debt hanging over your head, then, and only then is it time to start putting away money for retirement.