When it comes to paying off your debt or saving for retirement, it really depends on the situation that each person is in. For example, if a person has a mountain of debt they should probably pay it down before investing in their retirement. If you don’t have a bunch of debt, see what the maximum amount your employer will match in your 401K and then match what they will contribute. Finally, try to build an emergency fund so that you are prepared when things go wrong.
Key Takeaways:
- When it comes to your debt, you have to really look at it and understand how much you have, what your monthly payments are and what the interest rates are.
- Make sure that you are building up an emergency fund so that you are prepared in case something bad happens out of the blue.
- If you have a 401K plan at your job, see if your company will match your amount and then maximize the amount you are putting into it.
“There are legitimate reasons for this point of view—and from a behavioral standpoint, it’s a simple rule that’s easy to follow.”
Read more: https://www.forbes.com/advisor/retirement/pay-debt-or-save-for-retirement/
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