What should I do with my savings?
The short answer
In this order: emergency fund (3-6 months expenses), high-interest debt, tax-advantaged retirement match, index funds. Skip stock picking, skip crypto until you've done the first four.
Signals to weigh
- 01Do you have any debt above 7% APR? That's your first target.
- 02Is there an employer match you're leaving on the table?
- 03Is your emergency fund 3-6 months of real expenses, not aspirational ones?
- 04Are you saving 15-25% of gross income for retirement?
How to decide
- Step 1Build a 3-6 month emergency fund in a high-yield savings account first.
- Step 2Pay off any debt above ~7% interest — that's a guaranteed return.
- Step 3Capture the full employer retirement match — it's free money.
- Step 4Automate contributions into low-cost, broad-market index funds.
- Step 5Only after all above: consider single stocks, crypto, angel bets — with money you can lose.
Framework used
Cost-Benefit Analysis →Full walkthrough of the framework, with examples and pitfalls.
Consider these alternatives
- ·Talk to a fee-only fiduciary advisor if net worth is above $250k.
- ·Target-date funds if you don't want to manage allocation yourself.
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