Money talk

Young couple strike balance to save for future

Romeo Zavala and Maty Araiza Zavala are newlyweds who are smart enough to know that saving for the future should be integral to married life.

Romeo, 31, is a radio account executive, and Maty, 27, is a teacher’s aide at a daycare center. The two reside in Chandler. Together they earn about $85,000. Figuring out together how to save brought some changes to their individual spending styles.

 “It was an adjustment for me to start sharing my investments and assets with my wife.  It took a while for me to finally sit down with my wife and think about our future and not just my future,” Romeo says. “So we talked about our retirement plans and where we want to be in our savings and debt balances in 5, 10, and 30 years from now. We also recently took out a life insurance policy to make sure we are protecting each other.  I figured the policy would be more inexpensive now since we are still considered young adults.”

“I believe it’s important to think in the future and not just think about today,” Maty adds. “I want to be able to create enough capital to start our own business.  I’m the creative one and my husband is the business manager.”

Both are taking advantage of employer 401(k) plans and saving via payroll deductions. Maty, a self-described conservative spender, dreams of having children and someday owning a business, goals that Romeo (who views himself as a moderate risk-taker) avidly supports.

“I will say that it would be nice to be debt free,” Romeo adds. “I would also like for us to have our own business one day, but I don’t mind making six figures in the near future!”

Romeo says he and Maty communicate often and well about money, with each assuming roles that balance each other.

“I look at long term and she looks at short-term steps. I am moderate/risky and she is conservative. We are sort of like yin/yang...we find that balance,” Romeo says. “In short, Maty and I agree that we need to put as much as we can afford into our 401k and mutual funds.”

“Oh my God! Speaking of opposites, Maty is such a penny pincher.  I feel bad when I have to spend money on necessities, like golf balls!” Romeo says.

“I am way better at saving than he is,” Maty charges back. “I always look at the things that we are spending on before we decide to spend. He is an impulse buyer, and I am definitely not. He sees the value in my decision-making, but finds it very hard to save. That is why it is better to make your payroll deductions and your monthly savings transfers before your paycheck clears your checking account.”

Yet it was Romeo who had a financial planner already in place, which gave the young couple a place to start devising a savings strategy.

“We are still learning how to play the game,” Romeo admits. “I have always relied on my financial consultant to help guide me. Now that I am married, I have introduced a financial planner to Maty so she can learn what others taught me many moons ago.”

The financial consultant began by asking each of them about their future plans, taking stock of their current assets, assessing their individual risk tolerances. Together the three created a profile for the couple and developed an investment strategy that would help them reach their goals.

“From this financial blueprint, Maty and I are able to see savings (milestones) we need to hit on an annual basis to be at our 30-year goal,” Romeo says.

“I don’t think we could ever do this on our own, nor would I want to,” Maty adds. “I love my husband, but I need a second opinion -- someone who will give us direction and is not afraid to act like an arbitrator when different opinions are exposed.       

“After all, I don’t want him spending all his money on golf balls.”