- No matter what other financial priorities you have, always be sure to make at least the minimum payments on all debt, on time.
- Your next step should generally be to build up a cash buffer, so you have some wiggle room in your finances to help you meet unexpected expenses.
- If possible, you should then try to capture the full amount of any employer match on retirement savings, so you don’t leave "free money" on the table.
- Paying down any credit card debt and fully funding your emergency savings should generally be your next moves, before you move on to other investing or debt goals.
Student loans, credit cards, and mortgages—oh my. Like many people, you may have a variety of debt. And like many people, you may be working to pay off your balances while also trying to build up some savings for a rainy day (not to mention retirement).
Trying to juggle so many competing priorities can be stressful, particularly if you’re not sure how best to focus your attentions. So we put together this step-by-step guide to try to help you decide what to tackle first.
Although we may not be able to fund your 401(k) for you or kill your student loans, hopefully we can help take some of the confusion out of the process as you work toward your goals.
