[Candice]

For those pursuing Financial Independence, establishing a clear and effective financial strategy is crucial.

I’m interested in understanding the recommended sequence of financial priorities that members of the FI community should follow.

For example, should one focus on building an emergency fund first, or is it more beneficial to prioritize paying off high-interest debt?

How should investing in retirement accounts fit into this plan, and where does saving for other long-term goals come in?

I’m looking for a structured approach that can guide both newcomers and seasoned FI enthusiasts.

Your insights and experiences would be greatly appreciated!

[Cody]

Here is a typical contribution order of operations on the path to FIRE:
1. Traditional 401(k)/403(b) up to the full employer match

2. ESPP

3. HSA

4. Traditional 457(b)

5. Traditional 401(k)/403(b) remaining

6. Roth IRA (may require backdoor)

7. Mega-backdoor Roth 401(k)/403(b)

8. Taxable brokerage

Notice that some options may not be available and would be skipped.

[Matthew]

Add first, then subtract. If you can multiply at some point great but always try to avoid dividing.

[Al]

Save, invest, agonize over spending in retirement

[Steve]

I don’t know that Choose FI has done an “order of operations” as much as they’ve demonstrated all kinds of options to take.

Just pick one, and do 1% better.

(But listen to the money guys for a more step by step plan.)

[Jake]

1) Retirement match options.
2) emergency fund

3) high interest debt

4) best tax deferred investment options

5) low interest debt / non tax deferred investments per your discretion.

This is my simplified opinion, assuming typical options.

Not detailed or fit for every situation.

[Author]

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