keep-calm-and-set-your-prioritiesThe general rule of thumb for investing priorities is:

  1. Invest in your company 401(k) plan up to the match
  2. Pay off short-term, non-tax-deductible debt (e.g., credit card, car loan)
  3. Establish an emergency fund; 6-12 months of living expenses is a good guidepost
  4. Put the maximum allowable amount in a Roth IRA (if eligible)
  5. Put the maximum allowable amount in your company 401(k)
  6. Invest the remainder in taxable accounts
  7. Pay down tax-deductible debt (e.g., home mortgage)

 

Source: Vanguard