This is the season of planting. The financial habits you cultivate now will compound for decades. Learn to harness time—your greatest asset—and set the trajectory for lifelong wealth.
Follow these 6 steps in order to build a solid financial base. Click any step to expand.
Build your emergency fund in an account that pays you
Before you invest a single dollar, you need a safety net. An emergency fund of 3–6 months of expenses protects you from life's surprises without having to go into debt.
Traditional banks pay next to nothing (often 0.01% APY). Online banks routinely offer 4–5% APY. On a $10,000 emergency fund, that's the difference between $1 and $450 per year.
✓ Your Action
Open a high-yield savings account and set up automatic transfers from each paycheck.
🌿 Give your savings a name that speaks to its purpose. "Peace of Mind Fund" reminds you why it exists.
Capture free money from your employer match
If your employer offers a 401(k) with a match, this is your first investment priority. A typical match is 50–100% of your contributions up to a certain percentage. That's an instant 50–100% return.
For 2026, you can contribute up to $24,500/year to your 401(k).
✓ Your Action
Enroll in your 401(k) and contribute at least enough to get the full employer match.
🌿 Consider where you are now versus where you'll be. If your tax bracket is lower today, the Roth 401(k) lets you pay taxes in the season of lesser burden.
Eliminate debt charging more than 7–8%
No investment consistently beats the guaranteed "return" of paying off 20%+ credit card interest. Paying off a card charging 22% is like earning a guaranteed 22% return, tax-free.
✓ Your Action
List all debts with their interest rates. Prioritize anything above 7–8%.
🌿 Debt is weight carried on the journey. Release it methodically, and each step forward becomes lighter.
Put your money to work on autopilot
Now it's time to put your money to work. The key is to start simple, keep costs low, and make it automatic so you don't have to think about it.
Roth or Traditional IRA: A Roth IRA is funded with after-tax money, but all growth and withdrawals in retirement are completely tax-free. A Traditional IRA gives you a tax deduction now, but you'll pay taxes in retirement. If you expect to be in a higher tax bracket later, Roth is often the better choice. For 2026, you can contribute up to $7,500/year.
Low-Cost Index Funds: You don't need to pick stocks. A simple portfolio of low-cost index funds gives you instant diversification across hundreds of companies. Look for expense ratios below 0.20%. The simplest approach: a target-date fund or total stock market index fund.
Automate Your Contributions: The best financial plan is one you don't have to think about. Set up automatic monthly contributions so money moves to your investments before you can spend it. Many brokerages let you automate purchases of specific funds.
✓ Your Action
Open an IRA at a low-cost brokerage, choose a target-date or total market index fund, and set up automatic monthly contributions.
🌿 Simplicity is the ultimate sophistication. One good index fund, automatically funded, can outperform a thousand clever trades. The river does not decide each moment to flow—remove the friction, and wealth accumulates naturally.
What gets measured gets managed
Your net worth is simple: Assets minus Liabilities. Track it monthly. Watching it grow is incredibly motivating.
🌿 Awareness without judgment. Observe your progress like watching seasons change—patient, curious, unattached to any single moment.
Financial literacy compounds like money
A basic understanding of investing, taxes, and money psychology will serve you for decades. A few hours of reading now can be worth hundreds of thousands in better decisions.
✓ Your Action
Read at least one foundational personal finance book.
🌿 The path to financial wisdom is walked one step at a time. Each book, each lesson, each small insight compounds into clarity.
Deeper dives into topics that matter at this stage of life.
Demystifying index funds, ETFs, and the simple strategy that outperforms most professionals.
A mathematical and psychological analysis of the two most popular debt payoff methods.
Understanding tax-advantaged accounts and why your 20s might be the best time for Roth.
Why a single negotiation can be worth hundreds of thousands over your career.
Our top picks for building your financial foundation.
High-Yield Savings
Top APY for your emergency fund with no fees or minimums.
Investing
The gold standard for low-cost index fund investing.
Net Worth Tracking
Free dashboard to track all your accounts in one place.
Financial Planning
Comprehensive retirement planning and financial modeling tools.
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Books that will shape how you think about money.
The classic guide to index fund investing and financial independence.
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View on Amazon →Eye-opening research on how ordinary people build extraordinary wealth.
View on Amazon →A practical, no-guilt guide to automating your finances and spending on what you love.
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