The Optimal Order of Managing & Investing Your Money | INVESTOR EXPLAINS

When we we get paid we usually let our debit orders or debit order go off our bank accounts first then after the debit order is done we then go in an start spending money on all the other things and maybe then put away savings and investments that is paying yourself last instead of paying yourself first. To ensure you pay yourself first you should have an #optimalorderofinvestingyourmoney , a smart money investment strategy that ensures we are putting money away in the most optimal order of #howtoinvest #payyourselffirst

In this video we will be discussing the optimal order of investing your money in any country and at any age, 1. starting with a safety net an emergency fund starting with 1 months expenses first then building up to a 3-6 months emergency fund, then the next step in the optimal order of investing is 2. Paying off your high interest debt like clothing accounts, credit cards, then the next step in the optimal order of investing is 3. taking full advantage of your pension or retirement annuity fund employer match like a 401k employer match where an employer will pay the exact contribution of your gross income into your pension fund thus doubling your contribution towards your pension and retirement fund, its essentially free money; and then the next step in the optimal order of investing is 4. reducing your low interest debt and avoiding pesky low interest debt completely and then the next step in the optimal order of investing is 5. paying down or reducing your home bond or mortgate, you can either reduce or pay down your mortgate completely then use the paid off house as collateral for another bond, mortgage or loan.
However, paying down your mortgage early or paying of your home bond faster is not always the best option so depending on the country you live in if the interest rate on your mortgate is lower than the average investment returns from the S&P500 per se then you should invest, that is paying off your mortgage early or investing ; or paying off your mortgage faster vs investing will be better. Alternatively if your mortgate rates or bond interest rates are higher than the S&P500 return of investment then you should consider paying of your mortgage early instead of investing or paying off your mortgage faster vs investing as this will yield better outcomes.

This is an iterative cycle so any excess funds after paying your mortgage or paying off your high interest debt and paying off your low interest debt can then be put towards building an additional fund that will increase your safety net and ensure your financial reserves are in order. This is the optimal order of investing your money and beats any other order, and can be applied by people in any country.

TIMESTAMPS:
0:00 Preamble
1:00 Safety Net : How to build your Emergency Fund
2:10 High interest debt : Critical
3.03 Take full advantage of Employer Match
4:25 Load your TSA/ISA/Roth IRA
5:17 Low interest debt : Avoid at all costs
5:46 Pay off your mortgage
6:44 Other Considerations: Investing vs Paying off your mortgage


DISCLAIMER: This video is for educational and entertainment purposes only. Yvonne does not provide financial or investment advice. The opinions expressed in this video are Yvonne's own and do not represent any organization. This content is not sponsored. Always consult a professional before making financial decisions.

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