Financial checklist after you make $100k/yr

If you just started making six figures, you've been making six figures, this is a financial checklist to make sure that you're not being reckless with your money. The very first thing that you should be doing is saving $15,000 into a high yield savings account. Reason why $15,000 is because if you're making $100,000, that's $8,333 per month, and after taxes, it's probably closer to $6,250 per month. This $15,000 is gonna represent three months of expenses. Your expenses are gonna be 80% of what you actually take home. That's $5,000 per month. This money is gonna give you a lot less stress when emergencies happen, like your car breaking down. Number two, you are gonna invest $625 every single month into a Roth IRA. That'll put you on track to hit the contribution limits. $7,500 a year. If you did this for 30 years, you'd end up with $1.7 million. All available to you tax-free. And for context, that's probably worth about $931,000 today. The third thing that you're gonna do is you're gonna invest $250 and fifty dollars a month into an HSA account. A health savings account. And if you don't spend it, then you would end up with about $370,000 after 30 years. The average retiree spends $172,000 just on healthcare. This means that all of this money could cover all of yours and your spouse's health expenses tax-free. Assuming that you have a 25% tax rate, and you would be saving about $123,000 in taxes. Number four, the thing that you're making this kind of money is you just want to protect yourself. I'm not talking health insurance or auto insurance, I'm talking things like term life insurance, identity theft protection, umbrella policy. If your net worth hits $500,000, you'll also wanna review your beneficiaries and set up a will. Number five. Debt. Don't let it fool you because this is listed at number five. This should actually be the first thing that you do. You're gonna do this literally before everything else, before investing in retirement accounts, everything. The way that you're gonna do this is you're gonna pay the minimums on your loans. And then you're gonna take an extra $1,250 a month and allocate that towards your smallest loan until it's paid off. Then you're gonna move on to the next loan. The reason why it's $1,250 a month is because this is 20% of your take-home pay.