Micro-investors Pay Attention! These Are Important Things You Should Be Doing

PennyGem’s Elizabeth Keatinge tells us about what else you should do in addition to micro-investing to reach your savings goals.

Transcript

00:00So, you have your microinvesting app and you're doing your roundups.

00:07You're on your way, right?

00:08Well, that's a great start, says NerdWallet.

00:11But to really be prepared to retire, you'll eventually want to take the next step, like

00:15a 401k.

00:17Making regular deposits into a 401k while microinvesting in tandem can help you reach

00:22your investment goals.

00:24An emergency savings account and paying off any debt should also be priorities.

00:28As Barron's explains, some financial planners suggest the 50-30-20 budget so people don't

00:34overspend based on their income and allocate enough funds towards saving and investing.

00:39So that's 50% of pay after taxes for necessities, 30% for entertainment, and 20% is to be saved.

00:46Remember, when you retire, you won't just want to hit a specific number, but you'll

00:50want to think of needing to maintain your current lifestyle when you stop working.

00:54If you're microinvesting, keep at it.

00:56But also, keep the work towards your financial goals going by seeing how else you can make

01:02your money work for you with other investments.