Episode•November 8, 2022•7 min

Tiffany's Take: What Should I Prioritize? | Ep. 162

Every Tuesday, Tiffany answers one of your submitted questions. To submit a question for an upcoming episode, visit here: https://www.moneytalkwitht.com/asktiffany. Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Prioritize saving when you have nothing saved
Start with small goals like $500, then $1,000, working toward 3 months of expenses
Saving provides immediate access to funds during emergencies like job loss or inflation
2
Always contribute to retirement accounts up to the employer match
This is free money you should never leave on the table regardless of other financial priorities
Example: If employer matches 50% up to 6% of salary, contribute at least 6%
3
Pay off high-interest debt aggressively
Credit cards at 27% interest mean losing $27 of every $100 to interest payments
Lower-interest debts like mortgages or student loans can wait if you lack emergency savings
4
You can (and should) do all three simultaneously
Tiffany personally saves, invests, and pays off debt every month
Review your budget to find areas to reallocate funds—even small amounts like $5-25/month count

Intro

In this Tiffany's Take episode, Tiffany Grant answers a listener question about whether to prioritize saving, investing, or paying off debt when managing personal finances.
Tiffany Grant is a financial coach and host of the Money Talk with Tiff podcast, providing practical money advice for everyday financial decisions.

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– Opening & Question Introduction

Tiffany introduces the episode and the listener question: should you prioritize saving, investing, or paying off debt?

She explains the answer depends on individual circumstances but generally recommends a combination approach.

– When to Prioritize Saving

If you have nothing saved, prioritize building an emergency fund first.

The only way you can prepare for those situations is by saving money. It's not investing or anything like that is actually having something to fall back on that you can have access to immediately.
– Tiffany Grant

Recommended milestones: Start with $500, then $1,000, ultimately aiming for 3 months of expenses.

– Investing Strategy: Get the Match

If your employer offers a 401(k) match, contribute up to the match regardless of other priorities.

That is free money that you can have that you do not want to leave on the table.
– Tiffany Grant

For entrepreneurs without employer plans, start small—$5, $10, or $25/month into a Roth IRA.

– Paying Off Debt: Focus on High Interest

High-interest credit card debt should be prioritized due to rising rates.

If your interest rate is 27%, that's $27 of every $100 that you have sitting on that card that's going to the company and it's pretty much lost money for you.
– Tiffany Grant