You’ve Saved Some Money, Now Where Do You Put It?

I talk to quite a few people that have begun taking baby steps by budgeting and figuring out where their money is going. But then, they get really confused about what to do next.

To be honest, I’m not surprised.  

So you’ve saved some money…now what?

With all the Jim Cramers, Suze Ormans, and CNBCs out there, I totally understand why people are unsure about where they should put their money. The mass media will try hard to confuse you in hopes that you’ll go after the next “best thing.”

That’s the worst thing you could do.

I mean, after all, you did work hard to budget and save this money, so you should be smart about where you invest it, right? 

I have compiled a 10 item list in the order of where you should put your money first:

Top 10 Places to Put Your Money

1. Pay off all high interest debt before doing anything else.  

This is in reference to high interest credit cards. Destroy your debt! Remove it from your vocabulary!

2. Fully invest in your employer’s 401(k) program.  

You can’t beat free money if they match you to a certain percentage.

3. Create an emergency fund for at least 4 months.

This is to cover your butt in times of crisis such as periods of unemployment, car repairs, and unexpected travel expenses.

4. Fully fund your ROTH-IRA.  

I recommend Vanguard for this.

5. Open a taxable discount-brokerage account and purchase ETFs

If you have more money to invest, open a taxable discount-brokerage account and purchase ETFs, NOT INDIVIDUAL STOCKS!  I recommend Fidelity or Robinhood for this.

6. Ensure that you have above average coverage for health/dental/disability/life insurance.

7. Pay down low-interest loans such as cars and school loans.

The sooner you can stop paying interest on a loan, the better!

8. Start a separate savings account for a down payment on a house.

Read more about why your should own instead of renting your home.

9. Pay down your mortgage.

10. Save for future children.  

Kids are (really) expensive, so start planning now!

Tell Me If You Agree!

If you disagree with my order, please comment below and put this list in a different order. I’d love to hear another person’s opinion on this!  

Related Content:

How to Make Your Money Work for You: 7 Modern Methods for Investing in “The Market”

Big Picture Investing: Why You Need to Get in the Game Now!

8 Proven & Practical Ways to Catch-Up With Your Retirement Savings Contributions

You Need to Do Your Personal Bookkeeping (Like a Business)…and You Hate It…Now What?!?

The Financial Planning Process: How to Mastermind Your Retirement

Leave a Reply

Your email address will not be published. Required fields are marked *