Let's say your income increasingly grew within each year.
In other words, as the year went on, you had more and more money.
How would you direct it? Assume you're starting at the beginning today.
For example:
- Save until my emergency fund held X months of expenses
- Once 1 is hit, pay off debt
- Once 2 is hit, contribute to my 401K to maximize employer match
- Once 3 is hit, maximize my Roth IRA to the annual limit.
- Once 4 is hit, maximize my 529 college savings plan
- Once 5 is hit, save for large upcoming expenses (engagement ring / wedding / downpayment on a house) by investing in a diversified bond index fund (liquid, protects against inflation more than cash does)
- Once 6 is hit, backdoor Roth as much as possible, until point X
- Once 7 is hit, invest in low-cost index funds to follow the stock market, until point X
- Once 8 is hit, invest in residential real-estate to earn rental money, until point X
- Once 9 is hit, invest in alternative investment X
And so on.
This is another way of asking how you prioritize incremental income. Really curious to hear about your personal plans/perspectives/situations. Thanks!
Submitted November 17, 2018 at 08:16AM by enderb3an https://ift.tt/2zcNllW
