Part 2 of 2 provides different options of where to put your next dollar. Some of those places are 1) Emergency Fund 2) Pay off high-interest debt 3) Increase insurance coverage 4) 401(k) 5) IRA 6) HSA 7) 529 Plan and 8) Safer assets. But choose the best option that aligns with your goals because everyone is different.

TRANSCRIPT

So, in a previous video, I teased the question “Where should my next dollar go?” I didn't answer it because I wanted you to consider a few things before actually answering the question of “Where should my next dollar go?” Well guess what? I've got some answers for you! So here are a few options to consider putting your next dollar.

Remember that emergency fund? If you don't have enough consider adding to it.

Number two, you could pay off some of that additional debt you have, especially those high interest credit cards.

You could also increase your insurance coverage; homeowners, renters, disability, maybe life or long-term care. Don't forget if you've owned a home for a number of years, chances are that you're insurance coverage was based on the value of your home at the time you purchased it. So if your home has increased in value then you may have to also increase your insurance coverage.

You could also take advantage of that “free money” from your employer by contributing more to your 401(k) plan.

You can open and contribute to a traditional IRA or a Roth IRA.

You can also open an HSA account for medical expenses and a 529 plan for education expenses if you qualify for those. Those plans have great tax advantages to them by the way.

You could also invest in safer and more predictable assets like High-Yield Savings accounts, CDs, and US Treasury bonds.

So those are just some of the options. It certainly isn't all of them, but some things to consider. But most importantly look at your financial goals and choose what aligns with those goals and what aligns with your values. Because everyone is different, so do what's right for you. Thanks.