Thread by @BrianFeroldi

Let's talk about personal finance

When I do financial coaching w/ friends & family

Step 1 is ALWAYS to get organized

Start by tracking your expenses

@mint
@PersonalCapital
@ynab

More:
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Step 2

Create income / net worth statements

Here is the coaching template that I created and use with all of my clients

drive.google.com/open?id=18ee7t…

Step 3

Optimize ALL expenses

Can you lower your cable / phone bill?

Can you spend less on food? (budgetbytes.com)

Do you have any recurring charges you no longer need?

Attack them all!

Step 4

Starter emergency fund

How much? At least enough to cover insurance deductibles

Step 5

Pay off ALL High-Interest Debt

Payday lenders

Credit cards

Loan sharks

Step 6 (if applicable)

401(k) up to the employer match

Step 7

Full emergency fund

3+ months of expenses in cash

6+ months if you have 1 income and kids

Step 8 (if applicable)

Max Health Savings Account (HSA) contributions if you have a high deductible health plan

$1,400 deductible individual
$2,800/family

fool.com/retirement/com…

Step 9

Max IRA contributions

Roth / traditional

$6,000 / $7,000 depending on age in 2020

Step 10

Pay off ALL non-mortgage low-interest debt

Student loans
Cars
HELOC

Step 11

Max out 401(k)

$19,500 / $26,000 depend on age 2020

Step 12 (if applicable)

529 contributions

Step 13

33% to a regular brokerage account

33% to mortgage paydown

33% to irregular expense fund (car, roof, vacation)

Step 14

Whatever you want

Other important things

If you have kids, YOU NEED A WILL & OTHER ESTATE PLANNING DOCUMENTS

Pay to meet with a local lawyer

It's expensive but worth it

If you have dependents and are not already rich

YOU NEED LIFE INSURANCE

20-year, fixed-rate, TERM insurance (not whole/universal) is a good start

I like $1 MM per adult

@Policygenius & @healthiqinsure are excellent resrouces

Other insurance:

Health
Umbrella policy
Disability
Home/renters
Car
Business (if small business owner)

Other tools (free):

@creditkarma for tracking credit score

SSA.gov

Annualcreditreport.com

@upromise

missingmoney.com

travelmiles101.com

If you are a homeowner

GET AN ENERGY AUDIT DONE

Many utilities offer this FOR FREE

And will even subside improvements

Amazing podcasts:

F.I.R.E.
@ChooseFi
@AffordAnything

Personal finance
@AnswersPodcast

Market
@MFIndustryFocus
@MarketFoolery
@MotleyFoolMoney

Too much to handle on your own?

Hire a fee-only money coach

I like momandddadmoney.com

But there are lots of great choices

Handy picture:

Remember, no one cares more about your money situation than YOU

It's all of our responsibility to do these things on our own

And to spread the word so others have a roadmap to follow

Sadly, they don't teach this stuff in school (I'm working on changing that!)