Of course, everyone will have different aims — maybe you want to pay off your student loans or credit card debt, buy a home, or be able to retire comfortably — but, according to Sacks, there are generally three tiers of financial goals that can serve as a starting point. Level one is opening a high-yield savings account, which is a type of deposit account that offers higher-than-average interest rates. Your money will grow quicker, making it a perfect place for, say, an emergency fund or any other money you don’t have to access regularly but may still need to use at some point. Once you’re able to put away $1,000, you can move onto level two: building up to a three-to–six month emergency fund in that high-yield account and starting to pay off your high-interest debt. Step three comes after you reach debt $0. “Start investing and max out tax-advantaged retirement accounts,” Sacks explained, pointing to a Roth IRA as an example. “There’s no ceiling to how much you can make, but you can’t save your way to wealth.”
