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Here are some of the top savvy money moves to consider, according to experts.
Build or Reinforce an Emergency Fund
Your first priority should be ensuring you have a solidemergency fund.
Financial experts typically recommend having three to six months worth of living expenses saved.
If your emergency fund is lacking, allocate a portion of the $5,000 deposit to bolster it.
Having extra cash on hand for unexpected bills is reassuring.
Aim to save enough to cover three to six months of essential expenses.
Even putting aside $1,000 of the $5,000 for this fund is a good start.
Klesinger agreed that its crucial to pay off high-interest debt first.
Thats an instant savings and reduces your long-term financial stress.
Depending on your situation, experts recommend contributing to anIRAor401(k).
These accounts offer tax advantages that can help your money grow more efficiently over time, said McCullough.
Klesinger shared the same advice.
Max out any retirement contributions youre eligible for, like an IRA.
Putting that money into the market now allows it to grow tax free over the long run.
Time is your greatest ally when building wealth, Klesinger explained.
Historically, a well-diversified portfolio has yielded an average annual return of about 7%-8%.
For example, a project management certification or an advanced coding course can open doors to higher-paying job opportunities.
In 2024, you could contribute up to $3,850 for individual coverage or $7,750 for family coverage.
This kind of investment can provide a steady income stream and potential appreciation over time.
Its all about balancing immediate needs with future growth and security.
Simple steps, but powerful when done consistently over time.
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