PennyGem’s Elizabeth Keatinge tells us about what else you should do in addition to micro-investing to reach your savings goals.
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00:00So, you have your microinvesting app and you're doing your roundups.
00:07You're on your way, right?
00:08Well, that's a great start, says NerdWallet.
00:11But to really be prepared to retire, you'll eventually want to take the next step, like
00:15a 401k.
00:17Making regular deposits into a 401k while microinvesting in tandem can help you reach
00:22your investment goals.
00:24An emergency savings account and paying off any debt should also be priorities.
00:28As Barron's explains, some financial planners suggest the 50-30-20 budget so people don't
00:34overspend based on their income and allocate enough funds towards saving and investing.
00:39So that's 50% of pay after taxes for necessities, 30% for entertainment, and 20% is to be saved.
00:46Remember, when you retire, you won't just want to hit a specific number, but you'll
00:50want to think of needing to maintain your current lifestyle when you stop working.
00:54If you're microinvesting, keep at it.
00:56But also, keep the work towards your financial goals going by seeing how else you can make
01:02your money work for you with other investments.