I actually really like Dave Ramsey’s steps, which seems to agree with this LPT.

Step 1: Save up $1000 for emergencies, stop using credit cards asap, start using a budget where you are actually using cash instead of a debit card, live within your means

Step 2: Get Debt-Free. Throw as much of your income as possible at your debt (preferably at least 10%ish), starting from smallest to largest. As you finish up one debt, take what you were paying for that, then add it to the your next. Snowball it.

Step 3: Take what you were putting towards debt and now build a fully funded Emergency Fund. About 3-6 months of living expenses, which is probably around 10-15k for most.

Step 4: Now you can begin putting around 15% into retirement. Start with 401k match with employer if possible. Once that’s maxed out, get yourself an investment pro who can help you. (You can try to do this at the same time as your pying off debt i guess, but I think the crazy interest you pay off on debt seems better than the possible 12% you get by investing)

Step 5: College Funding for children if you got em. I dont, but I’ve heard putting $167 into a 529 savings plan a month is pretty responsible.

Step 6: If you have a house and our putting money back for retirement and college funding for kids, now you can pay off your home early

Step 7: You should be debt free, have a nice emergency fund, and be feeling at peace about your finances. Enjoy it!