Before you invest anything — build this foundation first

I sold my house, I paid off all my credit card debt and I had about 153,000 sitting in my bank account and I still didn't invest a single dollar. Next thing was set up my foundation because investing without a foundation is like trying to build a house on sand. First thing I did was move $20,000 into a high yield savings account that's going to earn me 4.25%. This is my intangible account and it's six months of expenses saved up. So if anything were to happen, whether it's an emergency or I lose my job or I have a medical procedure, I'm always taking care of and I don't have to worry about ever touching my investments outside of that. The second thing I did was set up a separate bank account with another $20,000 in it. First thing is $9,000 that's going to be set aside for my son and getting his first car over the summer. The second is $7,000. I'm actually used to towards my own down payment on my car in the fall. And third is $4,000 under my summer expenditures. I plan on traveling and life and life happens a life. I don't want to ever have to use my investments while I continue to build wealth. I'm actually going to be able to take care of these other things with better pieces. . That's $40,000 early 4.25% interest while I figure out in life's next move. That's often a step that a lot of people miss, that goes straight into investing and when times get tough, they end up having to sell for a loss. That's how a wealth building strategy, that's a trap. Just build a foundation first and invest second. Follow for part three, this retirement account move is something that a lot of our owners miss and it almost cost a thousand of tax time.