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Get interest working for you, not against


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General Order of Priority:

1. Invest in 401k up to employer match

2. Pay off all credit card debt and never carry a balance going forward

3. Pay off other debts with interest rates above 8%

4. Invest in Roth IRA or regular IRA up to the yearly max

5. Invest in 401k up to the yearly limit or your maximum %

6. Pay off any remaining debts

 

Note: Always have a liquid cash cushion of several months rent/mortgage payments in case of emergencies. You may invest some of this money in short-term US Treasury Bills or CDs when you are on step 4 or later.

 

Any questions or suggestions? If you need advice, then which step are you on now?

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