Money
Milestones
The Money Milestones are the order in which we recommend building wealth. By focusing on each step, in order, you will build a strong foundation, stay motivated, and gain momentum for faster progress.
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2.
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3.
Max Out Your Employer’s Retirement Match
If your employer offers a retirement match, contribute enough to take full advantage of their offer. This means your employer will match what you contribute to your retirement fund, up to a certain percentage of your income. It’s a guaranteed, immediate 100% return on your money.
No. 1
Save One Month’s Worth of Income
Start by saving one month’s worth of income as a beginner emergency fund. This safety cushion will help cover unexpected expenses and lay the foundation for stronger financial security down the road.
No. 2
Pay Off High Interest Debt
Tackle high-interest debt (10%+ rates, even with introductory offers) using the debt snowball method. Begin with your smallest balances to build momentum, then tackle the larger debts. This will free up cash flow and reduce financial stress.
No. 3
Fully Fund Your Emergency Fund
Save enough to cover six months of living expenses. A fully-funded emergency fund ensures you're prepared for unexpected job changes, medical emergencies, or other financial challenges.
No. 4
Pay Off All Debt (Besides Your Mortgage)
Use the debt snowball method to pay off all non-mortgage debt. Reducing debt creates financial margin, lowers stress, and boosts your savings potential.
No. 5
Save & Invest at least 25% of Your Income
Commit to saving 25% of your income to build long-term security and short-term flexibility. Invest 15% for retirement in tax-advantaged accounts like a 401(k) or Roth IRA to maximize growth and minimize taxes. Set aside 10% for major expenses like a new car, home repairs, or other big purchases, so you're prepared and can avoid future debt.
No. 6
Pay Off Your Mortgage (ages 50+)
As you get closer to retirement, focus on paying off your mortgage. Eliminating this debt reduces monthly obligations, provides peace of mind, and paves the way for financial freedom in retirement.