Planning2 min read · Updated October 21, 2026
The order of money steps: match, debt, buffer, then invest
The order that works for most people: get the 401(k) match, kill high-interest debt, build a buffer, then invest. See a worked example with real numbers.
The order
- A small starter buffer.
- 401(k) up to the full employer match.
- Debt above about 10% interest, highest rate first.
- Three to six months of costs in cash.
- HSA if you qualify, then Roth IRA, then more 401(k).
Why this order
The match is an instant return of 50% to 100%. A 24% card costs you 24% a year, which no investment reliably beats. A buffer stops one surprise bill from going back on the card.
The numbers
$5,200 take-home, $3,400 of costs, $180 card minimum. Spare: $1,620. All of it on the card clears $6,000 in about 4 months for $276 of interest. At the minimum, 4.7 years and $3,987.
After the debt
Rebuild the buffer, then push the same monthly amount into a Roth IRA and your 401(k). The 2026 Roth IRA limit is $7,500 and the 401(k) limit is $24,500.
Common questions
Should I invest or pay off debt?
Debt above about 10% first, after capturing any employer match.
How big should the emergency fund be?
Three months of costs, six if others depend on your income.
What if I have no employer match?
Skip that step and start with debt and the buffer.