Market MakeHer Podcast 44. Replay: Where to invest first in your personal finance journey
Jul 19, 2024
Refresh your financial goals and reconsider where to invest your extra funds. Discover the importance of an emergency fund tailored to your life stage and learn how to capture that 401(k) match for immediate growth. Tackle high-interest debt before considering low-rate mortgages, and find out the best options for custodial accounts. Get tips for budgeting as a freelancer and ensure you’re reassessing your financial health regularly. Make a plan for your spare cash to avoid impulsive spending!
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Changing Cushion Needs With Life Stage
- Jessica shared how her emergency fund needs changed from single parenthood to being in a dual-income household.
- She used available assets and household structure to decide how large a cushion she needed.
Always Capture Your 401(k) Match
- Contribute at least enough to your 401(k) to capture the employer match because it's free money.
- Treat the match as an immediate return and prioritize it before other non-essential uses of excess cash.
Tackle High-Interest Debt First
- Attack high-interest debt (especially credit cards) before heavy investing because interest costs compound against you.
- If debt is large, prioritize repayment but still try to save a small amount for the future.