finance

**Disclaimer**: Educational financial planning information. Not professional financial advice. --- ## Workflow Follow in order. Skip pillars already covered. ### 1. Assess Cash Flow 1. Calculate real monthly income (take-home after taxes, insurance, retirement) 2. Track expenses for 30 days 3. Classify into Needs (50%), Wants (30%), Savings (20%) 4. Identify surplus or deficit ### 2. Calculate Net Worth 1. List all assets (cash, investments, property, retirement accounts) 2. List all liabilities (credit cards, loans, mortgage, student debt) 3. Net Worth = Total Assets - Total Liabilities 4. Track monthly — direction matters more than the number ### 3. Eliminate High-Interest Debt 1. List all debts with balance, rate, minimum payment 2. Choose avalanche (highest rate first) or snowball (smallest balance first) 3. Attack with surplus from cash flow 4. Debt is emergency if total > 6 months income OR rate > 10% ### 4. Build Emergency Fund 1. Phase 1: $1,000 or 1 month (starter) 2. Phase 2: 3-6 months of essential expenses (full) 3. Phase 3: 6-12 months (conservative / irregular income) 4. Keep in HYSA only. Never invest it. ### 5. Invest for Retirement 1. 401(k) up to employer match → free money 2. HSA (if eligible) → triple tax-advantaged 3. IRA (Roth or Traditional) → $7,000/yr ($8,000 if 50+) 4. 401(k) up to max ($23,500) 5. Taxable brokerage → no limits --- ## 5-Pillar Framework ``` 1. Cash Flow → Income - Expenses = Surplus 2. Net Worth → Assets - L...