Disability insurance covers lost income replacement if you get sick or injured for a long time. You should cover 60% of your paycheck.
3. Credit Cards
Credit cards charge some of the highest interest rates aimed at keeping you under water. You should aim at paying off your remaining balance
4. Emergency Fund
Your emergency fund is cash set aside to cover those unexpected expenses. Experts recommend saving 6 months of living expenses.
401K retirement plans offer tax-free growth and typically FREE money from your employer. And you don’t get taxed on the money you put in.
An HSA is an investment account for your healthcare needs that offers tax-free savings, tax-free growth, and tax-free use.
7. 529 Account
529 plans enable you to grow your money tax-free and spend it tax-free on educational costs. You may also get a tax deduction on the money you add.
IRAs are great ways to add to your retirement savings. They come in two flavors, traditional and Roth, and both let your investments grow tax-free.
9. Car Loan
Car loans have mid-high interest rates that add thousands to your original purchase price. That budget car could end up costing you luxury prices.
10. Extra Property Insurance
Homeowner’s and renter’s insurance do not cover everything you own. For highly valuable items, like an engagement ring, you’ll need an extra insurance policy.
11. Student Loans
Student loans charge mid interest rates that can keep you paying off your college for years to come. You may be able to defer your payments and not owe more interest.
Because mortgage debt is commonly carried over 30 years, the amount interest you pay will be more than half of the amount you borrowed. If rates are much lower, you should refinance.
13. Taxable Investments
Taxable investments give you the opportunity to stay ahead of increasing prices by growing your money in stocks and bonds, but you need to pay taxes.
What is the best way to save for college?
The Nevada 529 Plan. You can use this plan no matter what state you live in.
What is an index fund?
An index fund is a mutual that selects the stocks or bonds in it based on how much each stock or bond is worth.
What is a mutual fund?
A collection of stocks, bonds, or both. A mutual fund can have anywhere from a few stocks/bonds or thousands. A target date index fund might have thousands of stocks that represent nearly all companies in the world and thousands of bonds issued by companies and governments. Mutual funds make it is to invest and reap the rewards of the global economy.
What is an HSA?
An investment account from your employer that lets you save for health costs – no taxes for money that goes in, no taxes on money it makes, and no taxes when you take it out. You should only consider it if you and your family generally have low health expenses.
What is a 529 Plan?
An investment account that allows your money to grow tax-free for college. When you withdraw your money, you don’t owe any taxes.