🤑Hold a good amount of liquid cash for emergencies
💼Maximize contributions to your employer's 401(k)
💸Participate in your company's Employee Stock Purchase Plan
🗓️Pay down high-interest debt
🏦Invest in a taxable brokerage account
🤑Hold a good amount of liquid cash for emergencies
💼Maximize contributions to your employer's 401(k)
💸Participate in your company's Employee Stock Purchase Plan
🗓️Pay down high-interest debt
🏦Invest in a taxable brokerage account
Why is it important to hold cash reserves?
—Cash reserves provide liquidity for unexpected expenses and can prevent minor incidents from becoming financial emergencies.
What is the benefit of maximizing contributions to a 401(k)?
—Maximizing contributions to a 401(k) allows you to take advantage of employer matching, reduce your taxable income, and benefit from tax-protected growth.
What is an Employee Stock Purchase Plan?
—An Employee Stock Purchase Plan is a company-run program that allows employees to purchase company stock at a discounted price, often around 15% off.
Why is it important to pay down high-interest debt?
—Paying down high-interest debt can save you money on interest payments and improve your financial stability.
What is a taxable brokerage account?
—A taxable brokerage account is an investment account that allows you to invest in stocks, bonds, and other assets. Unlike tax-advantaged accounts, the income and capital gains in a taxable account are subject to taxes.
00:00High-income earners should prioritize holding cash reserves for emergencies.
01:00Maximize contributions to your employer's 401(k) and take advantage of employer matching.
02:00Consider participating in your company's Employee Stock Purchase Plan to benefit from discounted stock prices.
03:00Pay down high-interest debt to save on interest payments and improve financial stability.
04:00Invest additional funds in a taxable brokerage account to further grow your wealth.
