DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing Savings Hierarchy
Jan 27, 2025
Discover the essential guide to creating a savings hierarchy while balancing your financial goals. The hosts cleverly discuss how to prioritize your savings, focusing on significant milestones like retirement. They reflect on their journey of creating 700 engaging conversations about personal finance, sharing lighthearted moments influenced by coffee culture. With practical tips on budgeting for necessities and investments, they emphasize the value of strategic financial planning for a rewarding future.
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Coffee Preferences
- Logan and Allie discuss their coffee habits, including Logan's cycling caffeine intake and Allie's preference for elaborate coffee drinks.
- Logan mentions his enjoyment of making coffee with the Nespresso machine, while Allie talks about being spoiled by the high-quality coffee at their office.
Savings Hierarchy
- Prioritize saving for retirement by allocating 10% of your income to a 401k or IRA.
- Treat essential expenses like car replacements and home maintenance as parts of your budget, automating monthly savings for them.
Financial Planning
- Use a time value of money calculator to plan for retirement and work backward from that goal to plan for other mid-term goals.
- Include essential expenses like car replacements and home maintenance in your monthly budget, allocating automated savings toward these.