You Need a Budget (YNAB Book)

What are the financial priorities in your 20s?

In your 20s, focus on: building an emergency fund (3 months of expenses), paying off high-interest student loans and credit card debt, capturing your full 401k employer match, opening a Roth IRA (your tax rate is likely lower now than in retirement), and building good credit habits. Starting to invest even small amounts in your 20s has dramatically more impact than investing larger amounts in your 30s or 40s.

What are the key financial priorities in your 30s?

In your 30s, you likely face bigger financial decisions: buying a home, supporting a family, and accelerating retirement savings. Key priorities: max your Roth IRA ($7,000/year), increase 401k contributions, pay down your mortgage aggressively if you have one, establish term life insurance if you have dependents, and ensure your emergency fund covers 6 months of expenses given higher obligations.

What does ignoring your employer 401k match cost you?

Not contributing enough to get your full employer match is leaving part of your compensation on the table — it is the closest thing to free money in personal finance. A 50% match up to 6% of your salary means if you earn $60,000 and contribute 6% ($3,600/year), your employer adds $1,800. That is an instant 50% return before any market gains. Always contribute enough to capture 100% of the match, regardless of other priorities.