You’ve got competing demands on your paycheck, and it can be hard to know what to prioritize.  You’re not alone if you’re asking “Which should I do first - pay down my credit cards or save for my future?“ 

Here are 3 key points to answer that question:

1. The first thing you need is an emergency fund.  Life happens, so be ready for it by saving at least $1,000 into a liquid bank account.  Then, when the refrigerator stops working or your car needs repaired, you won’t have to reach for a high-interest credit card and pile on the interest costs.
2. If you have an employer match in your 401(k), save at least that much to capture the match.  It’s free money! And think of it this way - if your employer matches 50 cents for every dollar you put in, that is a 50% return on your money right away.  If they match it dollar for dollar, you’ve just doubled your money.  I am CONFIDENT you don’t want to lose out on those kind of returns.  Do this today -
3. Now you’re ready to look at your credit card and loan statements and see what interest rate you’re being charged.  You’ll see it defined as an Annual Percentage Rate (APR).  The U.S. stock market (as measured by the S&P 500 index) historically earns 7% over long periods of time, when adjusted for inflation.  So, if you’re being charged more than 7% interest on your debt, you’re better off prioritizing paying off that debt before you invest further into the markets. Typically, this translates into paying off your credit cards as a priority, but then letting your mortgage and auto loans pay off over time.  

• Here’s a great 401(k) calculator that will show you the power of your employer match and get you motivated to start saving today:  Nerdwallet 401k calculator 
• If you’re Ready to Be Debt-Free, I’ve created a whole online learning course to help people break free of their debt, permanently.  It takes about 3 hours to watch the self-paced video lessons and it’s chock full of helpful downloads to create a positive money mindset and give you the tools you need to get out of debt permanently.  
• It even includes a proprietary “What’s Your Debt-Free Date” calculator so you can see exactly WHEN you’ll be debt-free using my 3 step Debt Free Formula.   It’s on sale for 50% off for a limited time, so check it out here. 

"A year from now you may wish you had started today." --Karen Lamb

-Yvonne 😊

This information is for educational purposes only. Advice is general in nature and does not take into account your personal situation. Consult your own financial, tax, or legal advisors before taking any specific action.