Financial Operation
These are the steps I have followed. These steps are not new, and have been published extensively in many varients throughout the financial world. I have chosen my favourite steps.
Image copyright
Steps to financial success
The Plan
"Spend less than you earn, and invest the rest"
Order to Prioritise
Emergency Fund
- Save an emergency fund; this should be at least three months of expenses to 6 months. Take into account insurance deductables.
- Saved as a cash or cash equivalent, such as a savings account at the bank or Premium Bonds.
Pay Off Debts
- Aggressively pay debts, especially high interest (greater than 3%). Leave mortgage for later.
Save for the Future
- Save 10-20% of your income. Invest in a global index fund. For example, I use Vanguard as my preferred platform for my investments and buy index funds. If you have additional income, consider extra payments to the mortgage or invest more!
Last updated: 29/12/2022
Backlinks: Money