Every concept in this course comes together in a life financial plan. The earlier you start, the less you need to do — time is your greatest asset.
1. Emergency fund (1 month). 2. Employer 401k match (free money). 3. Pay off high-interest debt. 4. Max HSA. 5. Max Roth IRA. 6. Max 401k. 7. Taxable investing. 8. Grow wealth.
Net Worth = Assets − Liabilities. Track it quarterly. Growing net worth is the real measure of financial health, not income. Build assets (investments, home equity); shrink liabilities (debt).
Financial Independence, Retire Early: save and invest 25× your annual expenses (the "25x rule"). At that point your portfolio generates 4%/year indefinitely (the "4% safe withdrawal rate"). Not just for the wealthy — a modest lifestyle can reach FIRE faster.
Investing $200/month from age 18 to 65 at 8%: ≈$1.1 million. Waiting until 28: ≈$507,000 — less than half, despite only missing 10 years. Compound interest rewards the early starter above all else.
How much do you need to retire? (25× annual expenses rule)
Q1: The "25x rule" for FIRE means saving 25 times your:
Q2: The correct first step in the Financial Order of Operations is:
Q3: Starting to invest 10 years earlier typically: