Take a look at your monthly spendings. Now take a look at your savings. I recommend first to save up about three months worth of spendings. I would put this money in an online high yield saving accounts. Even better, you can put this money in an online no-penalty CD. Label this your emergency fund. ALLY Bank consistently give out pretty good online saving rates over the years. Some banks will raise then lower the rates, may sure you look at historical savings rates for the bank before parking your money there.
Now look at your debts. I would pay off any debts that is charging you an interest rate of 6% or more such as credit card debts or private student loans. Refinance your high interest student loans to get a better interest rate if possible. Lastly, I would look into buying term life insurance, disability insurance, and umbrella insurance. Once these things are done, we can start planning for retirement!
- Save up 3 months of spendings in High Yield Saving Account or No-penalty CD.
- Pay off credit card debts and other high interest loans.
- Refinance your high interest student loans.
- Insure yourself especially if you have dependents.
- Term Life Insurance
- Disability Insurance
- Umbrella Insurance