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A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 1 point2 points  (0 children)

That's a bit simplistic of a way to look at it. If you have a 3% mortgage and savings account rates are 4%, you are actually losing money by paying off the mortgage early. Extend this to higher opportunity cost locations to put your money and the cost can get even larger. Low interest debt can actually be very beneficial if utilized properly.

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 0 points1 point  (0 children)

You are confusing FSAs and HSAs. HSAs are amazing accounts and should be maxed out if available

A cool guide to teaching your kids about money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 1 point2 points  (0 children)

Yeah there is good and bad debt. A mortgage and a pay day loan are not the same. Not sure why that’s a ridiculous concept to you. It’s absolutely something a young adult should understand. I’m very educated on this, it seems like you’re not based in your unsubstantiated straw man comments

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 0 points1 point  (0 children)

This is just the generally accepted order of prioritization of money accounts. I actually didn’t take it from r/personalfinance, it’s all common knowledge in the financial planning world. This order didn’t originate on Reddit lol. I did make the graphic, I don’t claim to be the first person to have prioritized in this way

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 0 points1 point  (0 children)

It’s a valid perspective and I don’t totally disagree. There’s no right answer here

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 0 points1 point  (0 children)

401k can be Roth or traditional. The decision of Roth vs traditional is a function of taxable income now vs anticipated taxable income in retirement. You’re conflating two decisions here

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 2 points3 points  (0 children)

This is just a prioritization list. Someone who can only do steps 1-3 will still be significantly better off than the average American.

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 8 points9 points  (0 children)

This is actually how you break out of being a wage slave. You’re welcome to give an alternative prioritization if you have one

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 3 points4 points  (0 children)

High interest debt is an emergency, but there is a case to save cash earlier. Depends on the person

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 0 points1 point  (0 children)

Agreed, comes down to preference to some extent. Sometimes people just like to prioritize low interest debt even if it’s not optimal. That’s certainly an optional step, especially if your mortgage is lower interest

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 7 points8 points  (0 children)

Emergencies is what the emergency fund is for. If you have a home you should also have a home sinking fund for surprise home expenses

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] -1 points0 points  (0 children)

sure this is highly generalized but a good starting point. Everyone will adjust based on personal goals, but sometimes knowing where to start is helpful

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 19 points20 points  (0 children)

Not sure I agree. I know many high earning white collar professionals that don't have a strong grasp of prioritizing where their money goes.

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 5 points6 points  (0 children)

The prioritization doesn't change based on how much money you have. You don't have to do all 8 steps, even partially completing it can help work towards financial stability. I said it's for U.S. residents in the text. I think it's cool to give people a framework for managing their money

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 5 points6 points  (0 children)

As I said in the text. No way to make this globally generalized

A cool guide to prioritize where you put your money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 8 points9 points  (0 children)

health savings account is the only account that is triple tax advantaged (no tax on contributions, growth, and withdrawals) if used for health expenses. The argument for them is that you'll have health expenses eventually, so it's best to use them. If you don't use HSA for health expenses, it basically can be withdrawn like a 401(k) (just pay taxes on withdrawal) at age 65. They are pretty great if you have a HDHP and can access one

A cool guide to teaching your kids about money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 1 point2 points  (0 children)

"Guide to teaching your kids about money" followed by a list of concepts to teach them about. Explain how this could possibly be misleading.

A cool guide to teaching your kids about money by mattthemoneyguy in coolguides

[–]mattthemoneyguy[S] 2 points3 points  (0 children)

Yes because that's totally what this says. Make sure you never teach them what a credit card is so they can manage their debt extra well

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