Question 1

What should I do with my money first?

Accepted Answer

Start by contributing enough to your employer-sponsored retirement plan to get the full employer match — that's an immediate 50-100% return on your money. Next, pay off any high-interest debt (above 8% interest rate). Then build an emergency fund covering 3-6 months of expenses. After that, maximize tax-advantaged retirement accounts.

Question 2

How do I prioritize between paying off debt and saving for retirement?

Accepted Answer

Always get your full employer match first — it's free money. Then focus on high-interest debt (above 8%) before additional retirement savings, since paying off a 20% credit card is a guaranteed 20% return. Once high-interest debt is gone, maximize tax-advantaged retirement accounts. Medium-interest debt (4-8%) can be paid alongside retirement savings.

Question 3

How much should I save for retirement?

Accepted Answer

A common guideline is to save 15-25% of your gross income for retirement, including any employer match. Start with enough to get the full match, then increase your savings rate over time. Tax-advantaged accounts like a 401(k), individual retirement account (IRA), and health savings account (HSA) should be prioritized before taxable investing.