How would the money board rank these priorities? Obviously there's a million factors that go into this, so feel free to make broad based assumptions. For example, I'm assuming there's a company match in a 401k to consider. Overall I've tried to include all basic areas of financial concern for younger/mid career type people, but I'm sure I missed some so feel free to add anything.
The point is to see if there's some general consensus on where one's priorities should lie.
A - Credit and other consumer debt including car loans
B - Student Loans
C - Emergency fund/savings
D - Retirement savings (up to company match)
E - Retirement savings (beyond company match)
F - Education savings for children's college
G - Mortgage
My proposal would be:
4. E & F
The high level thought process here is beginning to save for retirement (and not give up free
money), then paying off shorter term consumer debt, building savings to eliminate need for short term debt, then working towards longer term savings goals. Longer term debt such as a mortgage and student loan I'm OK with assuming the interest rates are relatively low (<6%).
This post was edited on 1/6 at 9:20 am