Question 1

How much should I have in an emergency fund?

Accepted Answer

Most financial experts recommend having 3-6 months of essential expenses in an easily accessible savings account. Start with a smaller goal like $1,000 and build from there.

Question 2

Should I pay off debt or invest first?

Accepted Answer

Generally, prioritize high-interest debt (above 6-7%) before investing beyond your employer match. Always contribute enough to get your full employer 401k match first, as that's an immediate 100% return.

Question 3

What is the order of operations for personal finance?

Accepted Answer

A common approach is: 1) Build a small emergency fund, 2) Get employer 401k match, 3) Pay off high-interest debt, 4) Build full emergency fund, 5) Max out tax-advantaged accounts (IRA, HSA), 6) Invest in taxable accounts.