Where should your money go first?

We recommend that you start with the first four savings fundamentals and complete them in order. Then, move on to the last four fundamentals and complete them according to your personal financial priorities.

Schwab's eight savings fundamentals

1. Contribute to your company's retirement plan up to the maximum match.

2. Pay off nondeductible, high-interest-rate debt.

3. Create an emergency fund to cover at least three months of essential living expenses.

4. Contribute the maximum allowed to tax-advantaged retirement accounts.

5. Save for a child’s education.

6. Save for the down payment on a home.

7. Pay down tax-deductible, high-interest-rate debt.

8. Keep investing.

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