The correct order of savings and financial priorities can vary based on individual circumstances, but a commonly recommended approach is as follows:
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Pay off credit card debt - High-interest credit card debt typically accumulates quickly and can be financially crippling, so it’s advisable to pay that off first.
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Emergency fund - After addressing high-interest debt, building an emergency fund (usually 3 to 6 months' worth of living expenses) is important for financial security.
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Retirement fund - Once you've paid off debt and established an emergency fund, you can focus on saving for retirement.
So, the order would be: pay off credit card debt, emergency fund, retirement fund.