6 Steps to Financial Freedom

Become Debt Free and Create A Positive Net-worth

1. Establish a 3–6 month emergency fund

Establish this liquid fund as quickly as possible. This will prevent you from getting further into debt (if you have any already).

2. Max out employer 401k match (if available) — Continuous

A 401k employer match is free money you are throwing down the drain if you do not take advantage of it. If you’re employer matches up to 6% of what you invest in your 401k then be sure to invest 6% of each paycheck.

3. Max out your ROTH IRA each year — Continuous

The 2019 ROTH IRA contribution limit is $6,000 — which works itself out to $500/month. Be the driver of your future and start investing for retirement today. Don’t wait. The longer you wait, the harder you may have to work to save up to your goal retirement amount.

4. Establish a 1-year emergency fund

Having a 1-year emergency fund makes you practically bullet proof from life circumstances.

5. Put any extra funds towards debt

After you have developed your continuous investment habits (Steps 2–3) and have completed steps 1 & 4, it is time to put any extra funds towards debt. Pay off your debts in ascending order (pay off the…