Tax Strategy

Deciding where to invest is just as important as deciding what to invest in. If you put money into your Brokerage account before maxing your 401(k) match, you are literally throwing away free money. If you max your 401(k) before paying off credit card debt, you are losing a guaranteed 20% return to pay for a potential 8% return. To build the 75% / 25% split efficiently, you need to follow the Financial Waterfall. You pour your income into the top bucket, and only when it overflows do you move to the next. ...

Trying to increase your savings rate without giving too much up or burning the candle at both ends can be difficult. The goal isn’t to stop living; it’s to stop leaking money on things that don’t bring you value. Here are ten strategies—plus a bonus for parents—to keep an extra $1,000 (or more) in your pocket this year. 1. Stop Paying the “Lazy Tax” on Your Cash Most people leave their emergency fund in a standard checking or savings account earning 0.01%. This is a massive mistake. You need to move that cash to where it works for you, not the bank. ...