Are you leaving money on the table? It’s a question that everyone can stress about – figuring out where to allocate your hard-earned dollars. We’ve seen how easy it is to inefficiently use cash by overspending, or even leaving too much money just sitting in the bank.
We are offering this flowchart which covers some important factors to consider when deciding where your next dollar should go. It should help you consider your unique goals and preferences, and how those goals and preferences should be factored in when developing your personal “financial order of operations.”
This flowchart covers important factors to consider when determining where your next dollar should go, such as:
- Whether you are, broadly-speaking, financially secure (e.g., emergency fund, financially solvent, adequate insurance, etc.).
- Making sure you are taking advantage of any “free money” available to you through employer benefits.
- Considering and prioritizing specific goals or broad financial planning objectives.
- Considering specific accounts or strategies that may further complement your goals, but being mindful of any nuances that may affect your decision.