In today's video, I break down the steps to financial success. Not sure what comes first or how to tackle investing and paying off debt? I got you covered.
Here are the steps you can take:
1. Build an emergency fund - The recommended amount is typically 3-6 months of your living expenses.
2. Pay off high interest debt - If you have high interest rate debt, like credit card debt in the 20% ranges. Keeping high interest debt is expensive and is compounding working against you.
3. Investing for retirement - What tax-advantage accounts do you have access to? Start investing in these accounts first as they provide a financial incentive.
4. Pay off low interest debt - At this point, you'll want to tackle debt and invest at the same time. The average return in the stock market is 10%, so anything less or around this rate should be considered low interest rate.
5. Build your wealth - Continue investing through a taxable brokerage account with no limits to your contributions.
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