Everyone has different financial goals, but there are a few many of us share, and we can help prioritize those. So, how do you prioritize your goals?
#1 Maximize your 401k match
If your employer matches any percentage of your 401k contributions, make sure you’re contributing enough to get the full match from your employer. That way you’re not leaving anything on the table.
#2 Pay down nondeductible high-interest debt like credit cards
This advice goes for any high-interest debt, such as credit cards or car payments, where the interest can’t be deducted from your income before taxes.
#3 Build up an emergency savings account.
We suggest having 3 to 6 months’ worth of essential expenses saved in a low-risk account that’s easy to access--like a bank savings account or money market fund.
#4 Increase tax-advantaged contributions.
Contribute the maximum to qualified tax-advantaged savings accounts. Not only does this include your 401k, but also accounts like an HSA, if you you’re eligible.
#5 Other savings goals.
And now, you can start saving for other goals, like buying a home, a child’s education, or taking a special vacation.
To learn more about how to take control of your financial future, check out the other videos in our Finance 101 series.
