How Much Should You Invest Each Month?

Monthly Money Man on May 22, 2026

There’s a question I heard more times than I can count sitting across from people at their kitchen tables.

“Okay, I get it. I need to invest. But how much?”

It’s the right question — and it deserves a real answer, not a vague ‘it depends.’ If you’re wondering how much to invest each month, let’s skip the financial theory and go straight to the recipe.

Step One: Grab Your Company Match First

If your employer offers a 401(k) or 403(b) match, this is your first move — full stop.

Here’s why: a match is an instant, guaranteed return on your money. If your company matches 50% of your contributions up to 6% of your salary, contributing that full 6% means you’re actually putting away 9%. That extra 3% costs you nothing. It’s part of your compensation — and if you don’t claim it, you’re leaving your own money on the table.

Before you think about anything else, find out:

  • Does your employer offer a match?
  • What percentage do you need to contribute to get the full match?

Then contribute at least that amount. That’s your floor, not your ceiling.

Step Two: Pause Here If You Have High-Interest Debt

Now here’s where a lot of people get tripped up — and where I want to be direct with you.

If you’re carrying high-interest debt — credit cards above 10%, personal loans in that range — you should grab your company match first, and then redirect extra dollars toward that debt before investing more.

Why? Because a 20% interest rate on a credit card will eat your investment gains alive. There’s no index fund on earth that reliably beats paying off a 22% APR. Getting the match still makes sense — that’s guaranteed return. But stacking more into a 401(k) while high-interest debt is compounding against you is climbing with a heavy pack when you could set it down.

Once that high-interest debt is gone, those same dollars become your next investment dollars. The path clears fast.

Step Three: Add a Roth IRA to the Mix

Once you’ve captured your full employer match and any high-interest debt is handled, the next step is opening a Roth IRA.

For 2026, you can contribute up to $7,500 per year — or about $625 a month. If that number feels out of reach right now, start smaller. Even $50 or $100 a month gets the account open and the habit started. You can always increase it later.

A Roth IRA gives your money room to grow tax-free, and it sits outside your employer — so it travels with you no matter where life takes you.

Step Four: How Much to Invest Long Term — Work Toward 15%

Here’s the number most financial professionals point to as a long-term target: 15% of your gross income going toward retirement.

Let’s see how it actually adds up. Say you earn $70,000 a year. Your target is roughly $875 a month toward retirement.

Start with your 401(k) contribution to capture the full match. Using our earlier example — you contribute 6% ($350/month), your employer adds 3% ($175/month) — that’s $525 a month already working for you, and $175 of it didn’t cost you anything.

Now open a Roth IRA and work toward maxing it. The 2026 limit is $7,500 a year — about $625 a month. Contributing even $350 a month to your Roth puts you right at that $875 target without ever increasing your 401(k) contribution beyond the match. Max it out, and you’ve actually exceeded 15%.

Grab the match. Max the Roth. You’re essentially at 15% — and you did it in two moves.

You don’t have to get there overnight. Start your Roth with whatever you can — $50, $100, $200 — and increase it as income grows. The direction matters more than the speed.

One more thing worth knowing: if you have access to an HSA through a high-deductible health plan, that tool deserves its own conversation — and its own article.

Your Investment Recipe

If you’re looking for a single reference to bookmark, here it is:

  1. Contribute enough to your 401(k) to get the full employer match. Always.
  2. If you have high-interest debt (above ~10%), tackle that next. The match is still worth it; extra investing can wait.
  3. Open and fund a Roth IRA. Start with what you can. Build from there.
  4. Increase your total retirement contributions over time until you reach 15% of your income.

That’s it. That’s the recipe.

You don’t need a spreadsheet. You don’t need to optimize every dollar before you start. You just need to know which step you’re on — and take it.

This Month’s Action

Pull up your most recent pay stub or log into your HR portal. Find out what percentage you’re currently contributing to your 401(k) — and whether you’re capturing the full employer match.

If you’re not — increase it this month. One small adjustment today is worth more than a perfect plan you start next year.

See you at the top.

This article is for educational purposes only and does not constitute personalized financial advice. Please consult a qualified financial professional for guidance specific to your situation.

Your Tax Refund: Freedom or Consumption?

Monthly Money Man on March 13, 2026

The Bottom Line Up Front: That refund hitting your bank account isn’t a windfall. It’s your own money coming back to you. And what you do with it in the next 72 hours will tell you everything about whether you’re still the old financial you, or the new one climbing toward the summit.

Let me guess what’s happening right now.

You filed your taxes. You’re getting a refund. And you’re already thinking about what to buy with it.

Maybe it’s that thing you’ve been eyeing for months. Maybe it’s a weekend trip. Maybe it’s just “treating yourself” because you feel like you earned it.

I’m not here to judge. But I am here to ask you one question:

Are you buying freedom, or are you consuming?

Because here’s the truth most people don’t want to hear: your tax refund isn’t bonus money. It’s not a gift from the government. It’s money you overpaid all year that’s finally coming back to where it belonged all along—in your hands.

And what you do with it in the next few days will show you exactly who you are financially.

The Consumption Trap

I’ve watched this pattern play out hundreds of times.

Someone gets a $2,000 refund. They’re excited. They feel like they just won something.

And within two weeks, it’s gone.

New TV. Night out. Online shopping spree. Upgrade the phone. Book a flight.

All consumption. Nothing invested in the climb ahead.

And here’s what happens next: three months later, that same person is stressed about money again. The emergency fund is still empty. The debt is still there. The financial anxiety is still crushing them.

Because they consumed the refund instead of using it to buy freedom.

What It Means to Buy Freedom

Freedom isn’t a vacation. Freedom isn’t a new purchase.

Freedom is waking up and knowing you have options.

It’s having one month of cash reserves so you’re not living paycheck to paycheck anymore.

It’s paying off that credit card so you stop hemorrhaging interest every month.

It’s maxing out your Roth IRA contribution so your future self doesn’t have to scramble.

Freedom is what you buy when you use money to reduce stress instead of create temporary pleasure.

And your tax refund—if you’re getting one—is the single best opportunity you’ll have all year to buy a significant amount of freedom all at once.

The Test of Who You’re Becoming

Last week we talked about emptying your financial backpack to see what you’ve been carrying.

This week, you’re making a choice about what to put back in.

The old financial you puts consumption back in. Stuff. Experiences that don’t build anything. Short-term pleasure that disappears.

The new financial you—the one who’s ascending this mountain—puts tools back in. Things that make the climb easier. Things that reduce the weight you’re carrying.

Your refund is the test.

Are you still the person who consumes windfalls? Or are you becoming the person who deploys them strategically?

Where Your Refund Should Actually Go

Here’s the honest answer: I don’t know where your refund should go.

Because I don’t know what your greatest financial weakness is right now.

But you do.

If you have no emergency fund: Your refund just became the foundation of your safety net. Put every dollar toward building that first month of cash reserves. That’s buying freedom from paycheck-to-paycheck panic.

If you’re carrying high-interest debt: Your refund just became a debt destroyer. Attack the highest-interest debt first. Every dollar you put there is buying freedom from interest payments draining your account every month.

If your foundation is solid but you’re not investing: Your refund just became your future. Max out your Roth IRA contribution for the year. That’s buying freedom for future you.

If you’re already doing all of those things: Then yes, enjoy some of it. But even then, consider using most of it to accelerate your climb. Freedom compounds. Consumption doesn’t.

The answer isn’t the same for everyone. But the question is: where do you need freedom most?

What to Do Right Now

If you’re expecting a refund, here’s your action step before it even hits your account:

Decide where it’s going before you have it.

Not “I’ll figure it out when I get it.”

Not “I’ll see how I feel.”

Right now. Today. Decide.

  • Is it going to your emergency fund?
  • Is it going to debt?
  • Is it going to your Roth IRA?
  • Is it going to finally fix that financial weakness you’ve been avoiding?

Write it down. Make the decision now, while you’re thinking clearly, before the money is sitting there tempting you.

Because once it hits your account, the consumption voice gets louder. The rationalizations start. The “just this once” thoughts creep in.

Make the decision now. Lock it in.

The New Financial You

You’re not the same person you were in January.

You’ve been tracking your spending. You’ve been building your safety net. You’ve been emptying your financial backpack and examining what you’re carrying.

You’re becoming someone different. Someone who’s climbing.

Your tax refund is the moment you prove it.

The old you would have already spent it in your mind.

The new you is buying freedom.

Which one are you?

See you at the top.