The Financial Coach at Capital Budget Strategies, LLC, Austin’s best Financial Coach, frequently gets asked by clients if they should pay off debt or fund their 401(k)?
Of course, the answer depends on the individual’s circumstances, but here are a few general tips:
1. Can you pay off your debt within 2 years? If so, then forgo your 401(k) contributions and attack that debt!
2. Does your company match your contributions? If yes, consider contributing only enough to obtain the maximum match. This is free money and should not be passed up.
3. What is your age? If you are under 35 years old, put a hold on the 401(k) contributions and get your debt paid off. You will have plenty of years to catch up with your 401(k).
4. If is very important not to have debt in retirement so focus on paying it off and staying out of debt!
For only $149, our Austin Money Coach will meet with you one-on-one via Zoom Video Conferencing and help you determine your Net Worth, analyze your spending, set up a monthly Household Budget, an Emergency Fund, a Snowball Debt Repayment Plan and let you know how well you are doing saving for retirement. Finally, we will review your bank accounts and introduce you to on-line banking and automated payments.
Our Austin Money Coach can meet with you during the week, in the evenings and even on weekends. Spend a few hours with us and we will put you on the road to financial security and a fulfilling retirement.
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