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7 Things You Must Do When You Start Making 6 Figures

Eliminate High-Interest Debt:

Prioritize paying off debts with high interest rates, such as credit card balances or student loans.

Maximize Retirement Contributions:

If your employer offers a retirement plan like a 401(k), aim to contribute at least the amount they match.

Create a Holistic Financial Plan:

Develop a comprehensive plan for your finances, including savings, investments, and retirement planning.

Update Your Expense Plan:

Reassess your budget to accommodate your new income level.

Increase Your 401(k) Savings:

If you haven't been able to save much for retirement due to other financial obligations, now is a good time to start.

Start a Health Savings Account (HSA):

HSAs are a great way to save for future medical expenses while reducing your taxable income.

Contribute to a Roth IRA:

If your increased income still qualifies you for a Roth IRA, consider contributing. This type of account offers tax-free growth and withdrawals, making it a valuable tool for retirement savings.

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