In Phase #1 we focused on Protecting Your Income as a foundational step -- building three months of savings, making sure income protection is in place through disability coverage, and adding umbrella insurance where appropriate.
Phase two is where we start to build momentum.
To make it more interesting, I’m walking through this phase from Charleston, North Carolina.
One of the simplest ways to strengthen retirement savings is understanding how an employer match actually works. Sometimes it’s straightforward—100% of the first 3% of income. Other times it’s structured in tiers, such as 100% on the first 3% and 50% on the next 2%. The key is knowing your plan’s formula and working toward capturing the full match.
Once you've taken full advantage of the match, you’re building your retirement account more efficiently and setting the stage for the next phase.
Pro tip: If your plan offers automatic contribution increases—1% or 2% per year—take advantage of them. As income grows, contributions increase alongside it, and most people don’t feel the change. Automation makes this step easier and more consistent over time.
In the next video, we’ll move into phases three and four where we discuss eliminating high-cost liabilities and building a full savings reserve.
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