You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances. If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.
And so long as the bank is FDIC-insured, your money is safe. Another safe place to park your money is in acertificate of deposit. A CD has a set term, ranging from a month to up to 10 years; you cannot touch your money until the term has elapsed. The trade-off for this reduced liquidity is higher interest, and longer terms generally have higher rates (around 3%, as of early 2019). You might also get a higher rate with a jumbo CD, which are specifically for balances of $100, 000 or more. If your employer offers access to a tax-deferred account, consider making a maximum contribution. The maximum for all of these is $18, 500 for 2018 and $19, 000 for 2019.
The key to a secure financial future doesn’t only belong to financial experts. But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.
At the very least, make sure you contribute enough to max out any matching that your employer offers. Dividend aristocrats are S&P 500 companies that have raised their dividends for 25+ years. See data and research on the full dividend aristocrats list.
I used to believe hiring coaches was a waste of money when I could learn the subject alone. Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior.
For example, after contributing more towards retirement, treat yourself to dinner. All this means is delaying short-term pleasure for something bigger in the future.
Research shows that those who have delayed gratification are more successful. Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors. Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen. CDs require you to give up access to your money for a while, but they offer a guaranteed payout.