24. Pay Yourself First (Saving, Budgeting, Investing)

Do I add money to my emergency account before maxing out my IRA?

When do I put my funds into a taxable account?

What makes the most sense for ME?

In this episode, we cover the order of events of how to pay yourself -- and some of the nuances you may want to consider as you enter various life stages. This is not a one size fits all formula. We'll help you think through that!

We do discuss the importance of budgeting and what happens when you have excess income: paying yourself. We cover topics like saving for a rainy day, maxing out company benefits, paying down credit card debt, and high-interest rate loans. We also explore the benefits of health savings accounts (HSAs) and the importance of maxing out IRAs and 401(k)s. Additionally, we discuss the value of saving for children's future financial needs. Financial independence is a personal journey that requires regular evaluation and adjustment. We talk about the importance of understanding the differences between retirement accounts and taxable accounts, and the flexibility and freedom that comes with taxable accounts.

Takeaways:

• Save for a rainy day by building an emergency fund.
• Maximize your company benefits, such as 401(k) matching.
• Prioritize paying down high-interest rate debt, such as credit card debt.
• Consider the benefits of health savings accounts (HSAs) for medical expenses.
• Max out your contributions to IRAs and 401(k)s for retirement savings.
• Save for your children's future financial needs. Understand the differences between retirement accounts and taxable accounts
• Consider the flexibility and freedom of taxable accounts
• Start investing as early as possible, but it's never too late to start
• Create a plan for excess income and be mindful of money mindset and habits

Still Confused? Have More Questions or a Comment?

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About Us 🌚🌞 Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective. Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a licensed financial advisor before making investment decisions.