Get your free financial scoreSign inYour data on this device
Free to use. No account required.

What is the financial order of operations, the flowchart people refer to?

The financial order of operations is a priority list that tells you where each dollar should go first, so you're not guessing. A common version: (1) cover basic living expenses; (2) capture any 401(k) employer match — it's free money; (3) pay off high-interest debt like credit cards; (4) build a starter emergency fund of about one month, then grow it to 3–6 months; (5) max tax-advantaged accounts (HSA, IRA, then more 401(k)); (6) pay down moderate-interest debt; (7) invest in taxable accounts and pursue bigger goals. The point is to handle guaranteed returns (a match, high-interest payoff) before optional ones. Once your foundation is set, see where you stand at wealthserene.com/assessments/financial-wellness.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures