Knowing how to prioritize every dollar that comes in is a major factor in your overall success. It’s important to understand how your financial decisions today can affect your overall financial success in your lifetime. And providing you with a roadmap to make sure you’re covering all the areas you should and in the right order is exactly why we created this show for you.
Join us for this week’s episode of The Money Guy Show where we share ways to approach your finances that can result in two to three times the amount of money you have at retirement.
In this week’s episode, you’ll find out:
- How the decisions you make today impact your bottom line over the long-term
- What the roadmap toward financial success contains so you can maximize your wealth potential
- What is the ‘Financial Order of Operations’ when it comes to saving and your money?
- Umm… what on earth does DMCERHMHPD stand for? (just rolls off your tongue, right!?)
- Ok, we won’t leave you wondering. Here’s exactly what DMCERHMHPD stands for and how to address these components successfully:
- Deductibles Covered: You need to have enough money saved to cover basic emergencies.
- Match from Employer: Everyone who has access to a retirement plan that provides a match should work to take advantage of that “free money.”
- Credit Card: The order of priority between employer match and credit card debt is a coin toss. Consumer credit card debt and punitive interest rates charged should be avoided if you are going to be on the path to financial independence.
- Emergency Reserves: You need to save three to six months of living expenses for a rainy day and the unexpected events that can make life scary.
- Roth and HSA Contributions: The thought of tax “free” growth is exciting. Currently, you’re allowed to save $5,500 per year in a ROTH IRA if you’re under 50. If you’re over 50, you can save up to $6,500.
- Max-Out Retirement Options: Retirement accounts are great for building wealth for the future. We share the max-out numbers for each type of account in this episode.
- Hyper-Accumulation: You should aspire to reach hyper-saver status by saving 15-20% of your gross annual income.
- Pre-paid future expenses: You need to make sure you have your retirement squared away FIRST and then prioritize the other financial goals you can prepay and fund.
- Debt Prepayment: The desire to be master of your financial life includes being completely debt-free. We share exactly how you can do this and how to prioritize which debts to pay off first.
- Why having a financial plan is so effective at helping you reach your financial goals and achieve financial independence.
Tune In and Go Beyond Common Sense with the Money Guys
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