Checklist for Success

1. Have a budget that you update or check in with at least twice a month. If you hate spreadsheets, you can create multiple checking & savings accounts then automate your transfers & bill pay. Click here to learn more about this budgeting method or click here to work with me and finally feel empowered by your budget.

2. Savings - using a high yield savings account (Ally Bank, Sofi or Varo) which pays 2.00% or higher (depending on interest rates). Wells Fargo pays 0.01%.

3. Building an emergency fund with 3-6 months of living expenses in your high yield savings account.

4. Have an IBond account for longer term savings (i.e part of your emergency fund), currently paying 6.89% until 4/30/23 then the rate will probably increase. Click here for more details on IBond accounts.

5. Credit (for students) - using a student credit card with zero fees to build a credit score. Charging one purchase a month and paying the statement balance in full each month to build a good credit score and pay zero interest. Start once 18.

6. Credit (for adults) - working down credit card debt. If using a credit card, getting to a point of paying off the statement balance in full each month, otherwise switch to using a debit card until you can get your credit card debt and spending under control.

7. Credit help for your child: Add your child as an authorized user to your credit card if you have a good credit score and pay off your statement balance each month. Works best for kids under 18 years old.

8. Investing (if making under $140,000 per year) by opening a Roth IRA at Fidelity and buying the S&P500 (SPY, VOO, IVV) each month with the goal of investing $500/month or $6,000 per year which is the max allowed. Fidelity is my top recommendation because they allow you to open Roth IRAs and you can buy partial shares. If making over $140,000 per year, if your company offers 401K matching or if you want to invest more than $6,000 a year, then invest in your 401K, up to $20,500 per year. In the 401K, you also want to by an index fund that tracks the S&P500. If you are under 18, grab your parents/help your child, open a custodial Roth IRA. Click here for more info on custodial Roth IRAs.

Disclaimer: I am an educator, not your personal financial advisor. Please make sure to do your own research before moving forward with any actions discussed in this newsletter.

Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!