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 and LLC with a mission to demystify the stock market and make financial literacy accessible to all self-directed investors! We believe that investing is for everyone and that's why we break down complex investing topics (from "Her" perspective), show you free tools/resources on our podcast, and offer a ton of free educational content on our ⁠website⁠!

Important Disclosures:

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Tools and resources mentioned are for informational and educational purposes only. Remember, investing involves risk, and there's always a potential for losses when investing in securities.

Market MakeHer LLC provides educational content and resources, but we are not registered financial advisors and do not provide personalized investment advice. Consult with a licensed financial advisor before making any investment decisions.