I talk to quite a few people that have begun taking baby steps by budgeting and figuring out where their money is going. But they get to that point and get really confused on what to do with it. To be honest, I’m not surprised. With all the Jim Cramers, Suze Ormans, and CNBCs out there, I totally understand why people are unsure about where they should put their money? The mass media will try hard to confuse you in hopes of you going after the next “best thing.” That’s the worst thing you could do. I mean, after all, you did budget and save this money, so you should be very cautious where you invest it, right? Through my years in college, I made my fair share of mistakes, but through those tough experiences, you can learn from then so you don;t have to make them like I did. I have compiled a 10 item list in order of where you should put your money first:
1-Debt sucks, pay off all high interest debt before doing anything else. This is in reference to high interest credit cards. Destroy your debt! Remove it from your vocabulary!
2-Fully invest in your employer’s 401(k) program. You can’t beat free money if they match you to a certain percentage.
3-Create an emergency fund for at least 4 months. This is to cover your butt in times of crisis such as periods of unemployment, car repairs, and unexpected travel expenses.
4-Fully fund your ROTH-IRA. I recommend Vanguard for this.
5-If you have more money to invest, open a taxable discount-brokerage account and purchase ETFs, NOT INDIVIDUAL STOCKS! I recommend TradeKing for this.
6-Ensure that you have above average coverage for health/dental/disability/life insurance.
7-Pay down low-interest loans such as cars and school loans.
8-Start a separate savings account for a down payment on a house.
9-Pay down your mortgage.
10-Save for future children. Kids are expensive, start planning now!
If you disagree with my order, please comment below and put this list in a different order. I’d love to hear another person’s opinion on this! Hope you enjoyed this article. I will be posting up articles on each of these topics in more detail in the coming months ahead.
This is a great opportunity for anyone interested in delegating more of your work, so you have more free time to do the things you love! For a limited time, Tim Ferriss is offering unlimited free copies of his two books, “4-Hour Workweek” and “4-Hour Body.” 4-Hour Workweek is geared toward a business focused individual. If you’re thinking about starting a business or run one now, this book will provide you with some much needed insight into the topic of delegation of work. he covers topics such as work delegation, strategic email responses, and hiring virtual assistants from India. 4-Hour Body is a fantastic cook book for someone on a low-card, high protein diet. He’s got some great, new ideas in there for recipes. If you’re like me, you get tired of eating chicken grilled on the George Foreman!
-Click on the image below.
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(Just a heads up, this offer expires on the 26th)
ENJOY!
-JE
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