DR-Financial-Fitness-Framework

7 Steps to Financial Fitness

Step-1. Create Emergency Fund

• with least possible recurring amount

Step-2. Payoff Credit Card Debt

Step-3. Grow your emergency fund

• To meet 6 months of living expenses

Step-4. Invest in Retirement Fund

• Invest 5% in Roth IRA

• Invest 5% in 401k

• Invest 5% in mutual funds or Work sponsored tax deferred investment plan

Step-5 Invest in Kids College fund

• Use either 529 or

• Use Education Savings Account

Step-6 Settle The Home Mortgage

Step-7 Share With Others

• share with your parents/wife or

• donate the money

Points to Remember

1. Avoid Debt at all costs

2. Don't Borrow to invest in stocks

3. Use minimum necessary period for mortgages [Signup for 15 instead of 30 years]

4. Choose mutual funds that have win rate above market average for 5-10 years and Invest

• 25% in Blue Chip Fund

• 25% in Growth Equity Fund

• 25% in Aggressive Growth Fund

• 25% in International Funds

Surround Yourself With

1. Tax Planners

2. Estate Planners

3. Financial Advisors