Money, Explained From the Inside

Checkup / Chapter 8

What should I do first?

There is an order to money priorities. Answer honestly and the first “not yet” is your next step.

  1. 1Is your monthly margin positive, and do you know the figure?
  2. 2Do you hold at least one month of essential costs in accessible savings?
  3. 3Are you free of debt costing more than about 8% a year (cards, overdrafts, store credit)?
  4. 4Is your full buffer (three to six months, depending on your income) in place?
  5. 5Are the losses that would ruin you insured, and the small ones absorbed?
  6. 6Are you capturing any “free money”, such as an employer’s pension contribution?
  7. 7Are you investing regularly, at low cost, for goals more than five years away?
  8. 8Do you review your plan at least once a year?

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