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Four Small Steps You Can Take To Get Your Finances Under Control

Save $1,000 for an Emergency


This will be the base of your emergency fund while we take care of step 2, which is paying off your debt. This is just the first small step to get you moving, but you'll definitely need more down the line.


Get out of Debt


It is recommended that you pay off your debt from smallest to largest, without worrying about interest rate, just the balance. You can start by listing out all of your debt, while continuing to pay the minimum on everything. Then, put anything you can towards that smallest debt until it is paid off. After that you’ll want to take the amount you were paying on that first debt and roll it into the next smallest debt that you have. Continue down the list until all your debt is paid off. This system really works to get some momentum going since you will feel good with the small wins as you build up to larger ones.


Grow Your Emergency Fund

Whatever you were paying to get out of debt, you’re going to want to start putting that toward your emergency fund. It is recommended to have 4-6 months of emergency funds set aside, in case of an emergency (obviously). It is a good idea to put this in a high interest savings account. My favorite high interest online savings account is Ally.


Saving for Retirement

Most people are going to want to save about 15% of their income for retirement. You could start with a match in your 401(k) if your employer offers that, then you’ll want to look into Roth IRA or Roth contributions in your 401(k) if you have that option.


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