Finding your financial baseline is the first and most important step to take when you get paid.
Building an emergency fund is crucial to protect yourself from unexpected expenses.
Paying off high-interest debt early can save you thousands in interest and fees.
Prioritizing retirement savings is essential for long-term financial stability.
Investing in low-cost mutual funds can help you grow your wealth over time.
What should be included in my financial baseline?
—Your financial baseline should include all your monthly expenses, such as rent, groceries, utilities, and insurance.
How much should I save in my emergency fund?
—Aim to save at least six months' worth of your financial baseline in your emergency fund.
Which debt should I prioritize paying off first?
—Start by paying off high-interest debt, such as credit card debt, before tackling other loans.
When should I start investing in the stock market?
—Start investing as soon as possible, even with small amounts, to take advantage of compounding returns.
What are some low-cost mutual funds I can invest in?
—Some popular low-cost mutual funds include index funds and target-date funds offered by reputable financial institutions.
00:00Introduction to the importance of taking specific steps with your money when you get paid.
02:19The first step is finding your financial baseline by tracking your monthly expenses.
03:59Building an emergency fund of at least six months' worth of expenses is crucial for financial stability.
06:31Paying off high-interest debt early can save you significant amounts in interest and fees.
08:23Prioritize retirement savings, such as contributing to a 401(k) or Roth IRA.
09:59Investing in low-cost mutual funds can help you grow your wealth over time.
11:19Conclusion highlighting the importance of taking these essential steps with your money.
