Design
Know your numbers
Four phases, done one step at a time, in order — each step ordered so the highest-value move comes first, and each one ending with something automated so it keeps running without you. This page is the full map; Start Here finds your place on it.
Most financial advice fails at the doing, not the knowing. Three ideas close that gap.
Each move earns the best return available at that moment — protection before accumulation, the employer match before extra debt payments, retirement before other goals.
Every step ends with something automated — a payroll deduction, a recurring transfer, an autopay — so progress keeps happening without willpower.
You only work on one step. Each borrows one idea from The 4 Disciplines of Execution: one clear goal, a few actions you control, and a simple way to see your progress.
The on-ramp. First you name where you're going, then you measure where you stand and put your money on automatic rails — all wins through clarity, not willpower.
Before the numbers, name what the money is for — your top goals and what "enough" looks like for you. Spend extravagantly on what you love, cut the rest. People with a written plan retire with far more, because every step now has a personal why.
List every account and every debt — balance, rate, and minimum on each — then compute assets minus liabilities. Flag which debts are above vs. below 6%. No judgment; just a baseline.
Pull your last 60–90 days of statements, categorize the spending, and find your true monthly surplus. Watch the big three: housing ≤~28% of gross, all-in car ≤~8%, and bank half of every raise.
Build the rails so the plan runs without willpower: split your direct deposit, autopay all fixed bills, and set one automatic transfer of your surplus to high-yield savings. As you reach each step, you just point the automation at its target.
Catalog health, auto, home/renters, life and disability coverage plus employer benefits and 401(k) match — and spot the gaps. Note whether you're on an HDHP (your HSA eligibility depends on it).
Before building anything, make it impossible for a single event to wipe you out. Eight steps, in order: protect your income, lock in term life, build a starter safety net, capture free employer money, clear high-interest debt, complete the emergency fund, then handle the estate layer — sweep your beneficiaries and put your documents in place.
Your earning power is your biggest asset, and 1 in 4 workers is disabled before retirement. Secure own-occupation coverage to age 65.
If you're gone, your family needs income replacement. Buy 20–30-year term (never whole life) at 10–15× income — more with young children. You'll name a beneficiary at purchase, so the largest payout is covered from day one.
Enough to cover your highest deductible plus a buffer, in high-yield savings. Stops emergencies from becoming credit-card debt.
A 50–100% instant, guaranteed return — mathematically unbeatable. Contribute to the match threshold and pick a target-date fund.
Debt over 6% destroys wealth faster than markets build it. Attack highest-rate first (avalanche), freeze new debt, keep low-rate balances.
Sized on expenses, not income: 3 months for dual/stable income, 6 for single/variable, more if self-employed. Held in HYSA or T-bills.
The quick audit that sets up your will. Beneficiary designations override the will, so reconcile them together: list every account (401k, IRA, HSA, life, bank) and set primary + contingent. Free, ~20 minutes.
The legal layer: a will, guardians for minor children, and medical + financial powers of attorney. Placed here on purpose — with the emergency fund built, the legal expense no longer competes with your safety net. (Parents: if guardianship is your priority, you can pull this forward.)
With the foundation secure, build the wealth engine by filling tax-advantaged accounts in priority order, then layering taxable investing on top — climbing the savings ladder from 15% to a 20% standard, and toward 25%+ if you're aiming at financial independence.
Fill the three accounts the tax code rewards most, in order: the HSA's triple tax break first (if you have an HDHP), then a Roth IRA (backdoor if your income is too high), then your 401(k) to the max in low-cost funds.
Beyond tax-advantaged limits, build a three-fund taxable brokerage. Climb to a 20% total savings rate — 25%+ if you want early-retirement optionality — and set an automatic 1% bump every year so it grows without you feeling it.
Retirement is secured, so now fund the specific life you want and engineer complete debt freedom — without ever dropping below the 20% retirement savings rate.
529s for education, REITs for real-estate exposure, extra taxable for an early-retirement bridge, and dedicated funds for travel or passion projects — all keeping three-fund discipline. Only pursued after the 20% retirement rate is locked.
Retire the last low-rate balances strategically: keep cheap mortgages while young and investing; accelerate payoff approaching retirement to cut required cash flow. The goal is debt-free by retirement for maximum flexibility.
The accounts above are filled with the same simple engine throughout: a low-cost, broadly diversified three-fund portfolio whose stock/bond mix shifts with age. No stock picking, no complex products, no tinkering.
The bond allocation rises with age as the runway to retirement shortens — gradually trading growth for stability.
Whatever step you're on, handle these when they happen — then re-run Start Here. If it points you back to an earlier step, that's the system working, not falling behind.
Day to day, you work one step. Once a year you zoom out: confirm you're winning, reset the dials, and make sure the plan still points at the life you actually want.
Savings milestones. Aim to have roughly 1× your salary saved by 35, 3× by 40, 6× by 50, and 10× by 67.
The net-worth check. A rough target is Age × Income ÷ 10. Hit double that and you're building wealth faster than most of your income peers.