Every time you get paid,

Every time you get paid, this is where your money should go. So the first place is by making any minimum payments on debt. So this is so that your credit score doesn't take a hit. Number two would be your checking account. So as you can see, this person has a $4,000 a month income and $3,000 a month expenses. So if those expenses are $3,000 monthly, I would aim to have a minimum of $4,000 in there at all times so that you have a little bit of buffer between your bills and your account. Step three is your emergency fund. You want to have between 3 to 6 months of expenses saved up in a high yield savings account for emergencies. Current high yield savings accounts are paying between 3 to 3.5%. To make sure you have your savings, at least generating that. Step four is to pay off any remaining high interest rate debt, so any debt over 10% high interest. Step five is to contribute towards your 401K match, because if your employer offers one, this is very high return on your money. Then finally number six, investing. So you can invest any additional dollars in a Roth IRA. You can max out your 401K, or you can just invest in a taxable brokerage account. Ideally, you want to complete in a waterfall. So you would start with step one, then step two, then all the way to step six. Let me know if you have any questions in the comments.