Key idea
When every priority shouts at once, a sequence keeps you sane. Here's the order most sturdy financial lives are built in.
Should you invest, or clear debt, or save? All of them, but not all at once, and not in a random order. When money frees up, a clear sequence stops you from building the roof before the walls.
The staircase
| Step | Priority | Why it’s here |
|---|---|---|
| 1 | Cover essentials + small starter fund | Stay afloat first |
| 2 | Clear high-interest debt (cards) | 40% interest beats any return |
| 3 | Build the full emergency fund | Protects everything above |
| 4 | Get basic insurance (health, term) | One event can’t wipe you out |
| 5 | Invest for long-term goals | Now the base is solid |
| 6 | Optimise: tax, bigger goals | The refinements |
Why this order
Each step protects the ones after it. There's little point investing for a 12% return while a credit card charges you 40%. Clearing that debt is a guaranteed 40% "return," better than any investment. And there's little point building investments with no insurance, because a single hospital bill could force you to sell them all.
Finished reading?
Marking this complete counts today, and your streak becomes day 1.