Money FAQ: Straight Answers to Common Questions

Many planners suggest three to six months of essential expenses. Start with a smaller goal, such as 1,000 dollars, then build up. See our emergency fund guide.

Usually grab any employer 401(k) match first, then attack high-interest debt such as credit cards, then invest more. Low-interest debt can often be paid on schedule while you invest.

A fund that owns all the companies in a market index, such as the S&P 500, at low cost. See our Jack Bogle page.

24,500 dollars, plus catch-up contributions if you are 50 or older, per the IRS.

On the FICO scale of 300 to 850, scores in the 700s are generally considered good and above 800 very good, though lenders set their own standards.

Earning returns on your past returns, so growth accelerates over time. Try the examples on our compound interest page.

Not legally in most places: you can start as a sole proprietor. An LLC can add liability protection and credibility. Check your state's rules.

Margin is profit divided by price; markup is profit divided by cost. Our calculators show both.

In the US, at AnnualCreditReport.com, the official site for free reports from the three bureaus.

It is never too late to improve your finances. Starting earlier gives compounding more time, but consistent saving at any age helps.