LogFAQs > #895334470

FrenchCrunch posted...

clearaflagrantj posted...

Happy to hear that, those payments you're making now with the raise you earned are going to go a long fucking way for your future

question for you since youre savvy: do i save or do i pump the money into my debts to get rid of them asap

Heirarchy of saving is:

1. Establish Emergency Fund of roughly 2-3 months expenses. That way if you get laid off or some sudden expense like your car breaks down, you have enough money in your bank account to get by without taking on credit card debt

2. Match employer contribution to 401k (i.e. if employer contribution maxes at 5%, match it).

3. Pay off any debts higher than 5% interest (using avalanche method, i.e. highest interest rates first)

4. Max out personal retirement accounts like 401k, tIRA, and HSA

5. Save for other goals, like early retirement, house downpayment, getting ahead on low interest debts, etc.

reddit.com/r/PersonalFinance

reddit.com/r/FinancialIndependence

Both excellent resources