Lesson Notes for Questions 2, 3, and 4

1.    Are you getting your employer match? 

2.   Do you have high-interest debts? 

3.   Do you have a Fully Funded Emergency Reserve of at least 3 to 6 months?

Here are a few suggestions:

Ø  Dave Ramsey recommends saving for your fully funded emergency reserve first, then pay off ALL debts (except your mortgage), then focus on investing.

https://www.lemmikkiwealth.com/dave-ramseys-baby-steps

Ø  The Money Guys recommend ensuring you’re investing enough to get your employer match, then pay off all high-interest debts, then save for your fully funded emergency reserve.

https://www.lemmikkiwealth.com/the-money-guy-show-foo

Ø  Minority Mindset says to pay off all high-interest debts first, then save for your fully funded emergency reserve and invest at the same time by following a budget such as one listed below.

·         75/15/10 – 75% for spending, 15% for investing, 10% for saving

Good plan for individuals who have others relying on them financially or who have a lot of financial responsibilities.

·         50/30/20 – 50% for spending, 30 for investing, 20% for saving

Good plan for individuals who do not have others relying on them financially or who do not have a lot of financial responsibilities.

         https://www.lemmikkiwealth.com/minority-mindset-climb

Note: With either plan, once you’ve fully funded your emergency reserves, that percentage can be added to your investing category, helping you reach financial independence quicker.

If you’re aiming for Coast F.I., then once you reach your Coast F.I. number you can eliminate the investing amount as well, giving you more money to enjoy now. For Coast F.I. information, check out  https://www.lemmikkiwealth.com/fire-community

The Choice is Yours!