Achieving financial stability doesn’t happen overnight — it takes a journey. And, as with every journey, you’ll need to make some stops along the way. These stops, or milestones, can tell you how far you’ve gone — and where you need to go next.
Milestone 1: Build a foundation When you’re first starting on your financial journey — typically, when you are beginning your career — you’ll want to build a foundation by acting on key issues, such as saving, paying down debts and investing for the future. Here are some suggestions: Start your emergency fund. Eventually, you’d like to have several months’ worth of living expenses kept in a liquid, low-risk account to deal with unexpected costs, such as large medical bills or a major car repair. For now, though, at least try to put away a few hundred dollars or a month’s worth of expenses. To make it easier, have some money moved automatically each month from a checking or savings account into your emergency fund.
Take your employer’s match. Contribute enough to your 401(k) and health savings account (HSA) to earn your employer’s matching contribution, if one is offered.
