Annual Financial Checkup Workbook/Course
Section 2: Building Your Financial Foundation

Notes for Questions 2, 3, and 4

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The following three questions/steps may be completed in the order that is most important to you.

  1. Are you receiving your employer match?

    (This is FREE MONEY!)

  2. Do you have high-interest debts?

    (This is EXPENSIVE MONEY!)

  3. Do you have a Fully Funded Emergency Reserve of at least 3 to 6 months?

    (This is IMPORTANT MONEY!)

The Choice is Yours!

Every decision today shapes your freedom tomorrow.

Your financial journey doesn't have to follow someone else's roadmap. There’s no "perfect" order—just the one that aligns with your season of life. Start with what matters most to you. Completing these steps will bring clarity, confidence, and a sense of control in your life.

Here are a few suggestions

  • Dave Ramsey recommends saving for a fully funded emergency reserve first, then paying off all debts (except your mortgage), and then focusing on investing.

    https://www.lemmikkiwealth.com/dave-ramseys-baby-steps

  • The Money Guys recommend ensuring you’re investing enough to receive your employer's match, then paying off all high-interest debts, and then finally saving for a fully funded emergency reserve.

    https://www.lemmikkiwealth.com/the-money-guy-show-foo

  • Minority Mindset advises paying off all high-interest debts first, then saving for a fully funded emergency reserve and investing simultaneously, all while following a budget, as outlined below.

    • 75/15/10 – 75% for spending, 15% for investing, 10% for saving

      This is a good plan for individuals who have others relying on them financially or who have numerous financial responsibilities.

    • 50/30/20 – 50% for spending, 30% for investing, 20% for saving

      This is a good plan for individuals who do not have others relying on them financially or who do not have many financial responsibilities.

      https://www.lemmikkiwealth.com/minority-mindset-climb

Note:

  • With either of Minority Mindset’s plans, once your Emergency Reserve is fully funded, you can repurpose that savings percentage to accelerate investing.

  • If you're pursuing Coast F.I., once you've reached your Coast F.I. number, your investing contribution may no longer be required. This allows you to use more of your dollars for living life now.