Achieving financial stability doesn’t happen overnight — it takes a journey. And, as with every journey, you should reach some milestones along the way.
For your first financial milestone, you’ll want to build a strong foundation. Start by building an emergency fund to pay for unexpected costs, such as a major car repair. And try to contribute enough to your 401(k) and health savings account (HSA) to earn your employer’s matching contribution, if one is offered. Also, try to pay down or refinance some high-interest debt.
Your next milestone should find you gaining a stronger financial foothold. At this stage, continue building your emergency fund and try to put 10% to 15% of your gross income into your 401(k) or similar plan.
At your third milestone, when you may be in your middle or later years, you’ll want to invest as much as you can into your 401(k) and have at least six months’ worth of living expenses in your retirement fund. Also, review your retirement goals to ensure you’re on track to achieve them. Reaching these milestones will take diligence and commitment — but it will be worth the effort in helping you on your journey toward financial security.
This content was provided by Edward Jones for use by Linda Drake, your Edward Jones financial advisor, at (480) 985-2651. Edward Jones, Member SIPC