“What do I do next with my money?” – if this is a question you’ve asked yourself before, then the answer is: right here, with this episode! We cover so many money topics that it can be difficult to know how they all relate to you on your own personal finance journey. This episode serves as an incredibly helpful tool that will let you know if you’re headed in the right direction. We use the analogy of biking and how there are 7 Money Gears that we all need to follow to get ahead with our money. And it’s important to shift through these gears in order as well! Listen and find out if you’re on the right track, the importance of momentum when shifting money gears, and what it looks like to achieve financial independence.
The 7 Money Gears:
- Fund a basic emergency fund of $2,467
- Snag your company match in your 401(k)
- Pay off high-interest rate debt
- Fully fund an emergency fund with 3-6 months of living expenses
- Invest in tax sheltered retirement accounts
- Pay off lower-interest rate debt
- Pursue other big saving and investing goals!
During this episode we enjoyed a Future Knowledge by Paradox. And as we’ve kicked things off with a bang in 2021, we could really use your help to spread the word- let friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to spread the word to get more people doing smart things with their money in these difficult times!
Best friends out!
With the rise in inflation, would you recommend that the emergency fund now be a higher amount?
Great question Megan! Until there’s more research we’re going to stick with the $2,467 figure bc with that amount, most folks will still be able to handle a lot of the bumps in the road that life throws at them. But yes, eventually we’re going to have to increase that amount for Money Gear #1.
And the fully funded emergency fund can hold steady at 3-6 months of living expenses. Since it’s a variable amount that’s pegged to your expenses, it’ll likely fluctuate depending on your lifestyle!