If you have a little extra cash at the end of each month, it’s wise to put it toward long-term financial goals. But how do you know which goals should come first? Is it more worthwhile to put your extra money toward your mortgage or your retirement fund?
The short answer is that they’re both good options. About 36% of American households have a mortgage, and of those people, the average household owes about $168,000. And in regards to retirement planning, the median amount working-age American families have saved is just $5,000 — not even enough to see them through one year in retirement. In other words, a little extra cash would benefit most people in either of these situations….