Investing in a taxable account for goals closer than retirement.Contributing to an IRA, HSA, and/or other tax-advantaged plans.Contributing to an employer’s retirement plan enough to capture any employer match. Paying down high-interest debt as fast as possible.Building up an emergency fund of at least 3 months’ needs, and preferably more.Upgrading from what you already use to higher-cost alternatives (e.g., buying a new luxury vehicle rather than keeping a car that reliably gets you from point A to point B, buying a filet mignon to cook at home instead of a chicken breast, etc.)įinally, the last 20% goes to savings, which includes:.A car (assuming public transport offers an acceptable, albeit less convenient solution).High-speed broadband connection (except when it’s crucial to your livelihood).Consumer items (another pair of shoes, replacing a 2-year-old phone that still works fine, etc.).Eating out and entertainment (movies, shows, etc.).This includes everything that’s not in the “needs” category above, and that doesn’t increase your net worth (what you own minus what you owe). Insurance (renters or homeowners, and auto if you drive).Health care (insurance premiums, copays, co-insurance, and deductibles).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |