Unlocking Financial Success: A Step-by-Step Guide
Rung One – 401(k) Optimize your employer’s matched contributions if available. Your 401(k) is a key tool in building wealth, but only if you actively manage it.
Rung Two – Debt Prioritize paying off any lingering debt using proven methods to accelerate your progress.
Rung Three – Roth IRA Max out your Roth IRA contributions to secure your financial future. The annual contribution limit is currently $6000.
Rung Four – Max Out Your 401(k) Take advantage of the tax benefits offered by retirement accounts like the 401(k) before exploring other investment options.
Rung Five – Other Investments Once you’ve covered the basics, diversify your portfolio with long-term investments such as mutual funds.
Step #4: Automate your finances
At IWT, we believe in the power of automation. By setting up automated transfers for bill payments, savings, and investments, you can free up valuable time for yourself while ensuring financial responsibilities are taken care of.
Embrace a Conscious Spending Plan that allows you to prioritize saving and investing before indulging in discretionary spending. This approach offers more financial freedom than traditional budgeting methods.
Pay yourself first and check out the free Ultimate Guide to Personal Finance for expert insights on saving, investing, and achieving your financial goals.
Automating your finances in 12 minutes with Ramit Sethi
Learn the best practices for automating your finances, from optimal bill payment dates to stress-free savings automation, in this informative video guide.