Are the 8 Money Milestones in the right order? I sent out a tweet with the Milestones on them and received several questions.
In this episode, we answer some of them.
Here are the questions we cover:
- Are these in order? – Brandon & Terry
- Is there a way to save for retirement so that it isn’t seen as “my” retirement vs “her” retirement? – Billy
- Why should I do 3 before 4? – Christopher
- Why 15%? If cost of living is kept low, could 20-30% be better? – Quinn
For your reference, here are the Milestones:
- Milestone 1: Start giving.
- Milestone 2: Save $1,500 for a minor emergency.
- Milestone 3: Max out your 401(k) or 403(b) match.
- Milestone 4: Pay off all debt except your mortgage.
- Milestone 5: Save 3-6 months of living expenses for a job-loss level emergency.
- Milestone 6: Put 15% of your gross income to retirement.
- Milestone 7: Save for college or pay off your mortgage.
- Milestone 8: Live generously.
And here is your Money Challenge:
Figure out what Money Milestone you are on. Look at the list. Where do you stand? And consider how you can get to that next Money Milestone. If you are married, this is a great conversation to have with your spouse.