ACCOUNTANT EXPLAINS: The Optimal Order of Investing Your Money

In this video, I cover the optimal order to invest your money. Enjoy Xx

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⌚️Timestamps:
00:00 - intro
00:42 - Safety Net
01:36- High-Interest Debt
03:36 - Employer match
04:27 - Additional Fund
05:23 - Tax-Advantage Account
05:53 - Low-Interest Debt
06:38 - Other


MY FILMING EQUIPMENT:

KEEP IN TOUCH:

DISCLAIMERS & DISCLOSURES
This content is for education and entertainment purposes only. Nischa does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Thank you for your support!

[Sonia-rnzz]

I saved up a 12 month safety net plus an emergency fund. Took a few years, but I got there. I cannot express the peace of mind I feel from having that security - like a warm blanket around me 😊

[LeeHipperson]

For average earners, paying off high interest debt and paying up monthly subs is GOLD. 6 leaner months will soon fly by. I paid off a credit card, phone, and my gym. £310 extra per month made available. For average earners this is as good as a 10% - 13% pay rise.

[richardh]

The sense of freedom and relief having an emergency fund gives you is really hard to describe. I still remember the point where I made it a priority and not having to stress about money when your car breaks down or you get fired from a job is life changing. For that reason alone I would agree it’s the top of the list.

[Kado_Tornado]

For what it’s worth as an example to others: I am aggressively paying down my mortgage, on track to finish in 5 years on a 30 year mortgage. You could definitely argue that this does not make financial sense compared to investing the cash instead, but it is my only debt remaining and I still invest in my 401(k) and stocks at the same time. The psychological benefits are worth it to me.

[fmbuwoq]

I was blown away by this video. I come from a poor country and I am literally financially illiterate. I am so grateful I found your channel Nischa and I thank you for from the bottom of my heart for your videos.

[saverasavera]

I LOVE how you get straight to the point ughgh such a relief fr so many people waste so much time the first few minutes.

[Tashas_Travels]

I just hit my $1000 emergency fund goal.
I am now making the move of investing $100 every month into government bonds. (From July 2023 to July 2024)

Then simultaneously when I’m investing in the bonds, I will be saving another $100 towards my 6 months worth of living expenses ( will move to 12 months when I hit the 6 months goal).

[lakesnlawns]

I'll have the list framed and hung on the wall - this is so precious to me, and a huge validation, and an explanation, of why I am constantly being told I am doing better than the majority of Canadians, financially. Although a single mom, an immigrant, and currently a public servant, i managed to achieve the whole list in 12 years here, and of course, what I was building for my life before that. I am a huge believer in continuous education, which helped me change careers drastically from a teacher to an IT - and now with Nischa and Ali Abdal's videos, SKillshare etc, I am learning skills and building the knowledge to start a side hustle or two. Thank you so much, Nischa, and much love 💕 from Canada 🇨🇦.

[francy-mvzt]

As someone who works in finance, I totally agree with your advice. I will just immediately create a 3 to 6 months expenses emergengy fund before anything else to avoid making new debts. Unfortunately in Italy we don't have tax-advantage accounts which are an amazing opportunity

[wfpk]

I like that you consider the psychological part of investing and finances.

[sugoruyo]

One thing about the emergency fund: remember to adjust it on, at least, an annual basis AND/OR when you expenses increase substantially.
In the first case, make sure you’re keeping up with inflation by adding cash to the fund to account for Costco of living increases. Easiest way I’ve found, take your total saved, add current inflation, divide by 12. Add this amount monthly to the emergency fund. At end of year, redo the calculation and top it up as needed. Try to keep the emergency fund in easy access savings to counter around 10-20% of inflation.

At major events, say having a child, getting a pet, buying a house and having service charges or maintenance to cover, recalculate the emergency fund amount needed and budget to top it up accordingly ASAP.

[lagatha]

I am probably a bit older than your key demographic but I always learn something new from you. Keep up the good work.

[kichiii_]

appreciate how you make your content bitesize so its easier to digest, thanks! looking forward to more content

[FlavioMuggianu]

Thanks Nischa! Binge-watched most of your videos, very enlightening!

[drewforrest]

New subscriber Nischa - love your clear, simple and (FINALLY!) easy to understand insight. Great great work

[JnSxSam]

Definitely agree with the list and thank you for all the insights!

[oliverladykillerbiscuit]

Glad I found your channel, thanks for the great tips Nischa!

[Umearrr]

Your videos are the only thing I look forward to on a Sunday. Thank you for being so consistent and for being such an inspiration to me.🙏🏼

[KarenCooley]

Love your videos. You break it down in a way that anyone can understand. Thank you so much! Already subscribed about a week or so ago.

[camzy]

Possibly my favourite video you've made simply for how easy it was to follow on from whichever stage you're at. Kept each segment detailed but fairly brief too. Thanks for sharing your knowledge!