Automate Your Wealth
Chapter 1: Build Your Foundation

Lesson 3: Prioritizing Where Your Dollars Go

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🎯 Lesson Objective:

Learn how to make confident decisions about where each dollar should go — from debt and emergencies to investing and lifestyle spending — using a clear, simple prioritization framework.

💡1: Why Prioritization Matters

When money is tight — or even when it’s not — the number of financial decisions we face can feel overwhelming. Should you pay down debt, build savings, invest, or treat yourself? Without a system, you’re left guessing, and that uncertainty often leads to:

  • Paralysis: You do nothing because you don’t want to make the wrong move

  • Lifestyle creep: You spend on wants by default, not strategy

  • Inconsistent progress: You dabble in too many areas, without building momentum in any one

Prioritization is the antidote to confusion.

It’s the difference between:

  • Hoping things work out vs. having a clear financial roadmap

  • Always reacting to money stress vs. proactively building wealth

  • Feeling guilt about spending vs. enjoying it with full confidence

👉 Think of it like this: your financial life is a house. You wouldn’t start by decorating the living room before pouring the foundation. The same goes for your money — first build stability, then scale wealth, then enjoy the rewards.

Prioritizing where your dollars go gives each one a job — and ensures that no dollar is wasted.

📊 2: The Order of Operations Framework

Think of this like a financial funnel. Each layer builds upon the last:

  1. 🛒 Basic Needs – food, housing, transportation

  2. 💳 Minimum Debt Payments – avoid penalties and hits to credit

  3. 🚨 Starter Emergency Fund – ~$1,000 buffer for small shocks

  4. 🏦 Employer 401(k) Match – don’t leave free money on the table

  5. 🔥 High-Interest Debt – eliminate anything over 7%

  6. 🧯 Full Emergency Fund – 3–6 months of expenses

  7. 📈 Tax-Advantaged Accounts – Roth IRA, HSA, etc.

  8. 💼 Extra Investments – taxable brokerage, real estate

  9. 🎉 Lifestyle Upgrades – guilt-free spending, travel, fun

🧠 3: Why This Order?

Each level is chosen to maximize your financial resilience and ROI:

  • High interest debt is a guaranteed loss — kill it fast.

  • Employer match = instant 100% return.

  • Emergency funds are your buffer against life.

  • Tax-advantaged accounts offer compounding superpowers.

  • Lifestyle upgrades feel better when they’re earned.

🧩 4: When to Customize the Flow

Not everyone fits the same mold. You may need to adapt the funnel if:

  • You’re self-employed (swap 401(k) for Solo 401(k)/SEP IRA)

  • You’re in a volatile job (boost emergency fund earlier)

  • You have low-interest debt (<4%) and high earning potential (consider investing in parallel)

✅ 5: The “Next Dollar” Checklist

Use this checklist to know exactly what to do with your next dollar:

  • Do you have food, shelter, and bills covered?

  • Are you current on all debt payments?

  • Do you have at least $1,000 saved?

  • Have you maxed your employer 401(k) match?

  • Is any of your debt over 7% interest?

  • Do you have 3–6 months of expenses saved?

  • Have you contributed to your Roth IRA or HSA this year?

  • Have you started investing in a taxable brokerage?

  • Can you safely spend on fun or luxuries?

✅ Lesson Wrap-Up: Own Every Dollar

Money management isn’t just about saving or investing — it’s about intention. When every dollar has a clear job, your finances become less stressful and more purposeful.

You now have a practical roadmap:

  • Start with stability (needs, debt minimums, emergency fund)

  • Capture free returns (employer match)

  • Build long-term wealth (retirement accounts, investments)

  • Then enjoy the rest — guilt-free

No more guessing where your next dollar should go.

You’re the CFO of your life. Now you’ve got the playbook to match.

🧠 Quick Quiz

  • Covering basic needs like housing and food.

  • It protects your credit score and avoids penalties.

  • It’s a guaranteed 100%+ return on your money.

  • Pay it off early because it’s a guaranteed loss.

  • Every dollar should be intentionally assigned to a purpose.

⏭️ Up Next: Set It and Grow — How to Automate Your Investing

Now that you know where your money should go, the next step is making it happen without thinking about it.

In the next lesson, you’ll learn how to:

  • Link your paycheck to your investment accounts

  • Set up recurring transfers and auto-investments

  • Use automation to stay consistent — even when life gets busy

📈 We’re shifting from intention to action — and putting your wealth on autopilot.