She Strengthens

Unlock Your Financial Potential: A Step-by-Step Guide

When it comes to achieving your money goals, having a clear direction is crucial. But with multiple objectives competing for your attention, it can be overwhelming to determine where to focus first. That’s why we’ve created a simple, yet effective quiz to help you prioritize your next money move.

Assessing Your Emergency Fund

Do you have a safety net in place to cover unexpected expenses? If you’re single, aim for at least 3 months’ worth of savings, and 6 months if you have a family. If not, consider building your emergency fund in a high-yield online savings account before tackling other goals.

Debt: The Elephant in the Room

If you’re struggling with debt, it’s essential to address it head-on. Start by saving at least 1 month’s worth of expenses in a liquid savings account while making minimum debt payments. Once you’ve reached this milestone, focus on debt payoff strategies, such as balance transfer cards, refinancing, or consolidation.

Debt Scenario: What’s Yours?

• High-interest debt (e.g., credit card debt): Prioritize debt payoff to avoid further financial strain.
• Low-interest debt (e.g., student loans): Weigh the benefits of paying off debt quickly against investing for the future.
• Mortgage, car payment, or installment loan: Review your options, such as refinancing, if you’re struggling to make payments.
• No debt: Congratulations! You’re one step ahead.

Retirement Savings: Are You on Track?

Maxing out your retirement account, including employer contributions, is crucial for long-term financial security. If not, consider increasing your monthly contributions to 15-20% of your gross income.

Budgeting for Success

Take a closer look at your budget: Are there areas where you can cut back and allocate funds towards retirement savings or debt payoff? If not, it may be time to explore ways to increase your income.

What’s Next?

• Saving for a major purchase (e.g., house down payment)? Consider your timeline and whether a high-yield savings account or investment is best.
• Saving for a short-term goal (e.g., vacation)? Opt for a high-yield savings account to ensure easy access to your funds.

Get Started with Fidelity

With over 70 years of experience in the financial services industry, Fidelity is here to help you reach your money goals. Their expert team offers a no-nonsense approach to investing, making it easy to get started with as little as $1. Take the first step towards securing your financial future today.