There is no one “right” way to save for the future or to prioritize goals and objectives. We often advise investors to begin by simplifying their objectives into two broad categories. First, they should ensure that they are putting money aside to deal with “foundational” savings and high-cost debt, and secondly, beginning to plan for longer-term life goals.

1. How to Prioritize Disposable Income
Securing Your
Foundation
Building to Life
Goals
Pay down credit card debt
Establish emergency savings
Reduce other high-cost debt
Other debt (student, etc.)
1-10 years (house, children)
10+ years (retirement)