Once you’re debt-free (except the house) and have a fully funded emergency fund, you’re ready for the next big step: investing 15% of your household income for retirement.
Why This Step Matters
If you’ve ever felt behind or anxious about saving for retirement, you’re not alone. Baby Step 4 is where your hard work starts to pay off. With no payments draining your income and a solid safety net in place, you can now focus on building long-term wealth and preparing for your future.
How to Get Started
Invest 15% of your gross household income into retirement accounts like a 401(k), Roth IRA, or traditional IRA.
Take advantage of employer matches if available; matches are essentially free money.
If you're unsure where or how to invest, EveryDollar connects you with trusted investing pros who can help create a retirement plan that aligns with your goals.
Slow and Steady Wins
There’s no such thing as getting rich quickly. Smart, consistent investing over time is key to financial peace, and Baby Step 4 is how you get there.
Need help figuring out your next move? Talk with an investing pro who can guide you through your retirement plan with confidence.
Next: Baby Step 5: saving for your kids' college fund (if you have kids).