Kenneth_2003 said:

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I've watched a lot of these fellas on YouTube. They've got a similar approach to Ramsey, but are far less debt averse for those that can keep themselves out of trouble. One of the things they talk about frequently are their Financial Order of Operations.

https://www.youtube.com/@MoneyGuyShow

https://moneyguy.com/resources/

Comparison of Ramsey Baby Steps vs. FOO


Financial Order of Operations (FOO)

1. Deductibles Covered -- Enough in savings to cover insurance deductibles. Not each individually necessarily, but be able to handle a wreck and medical or a home issue and an auto, etc.
2. Employer Match -- Stop leaving that free money on the table.
3. High interest debt -- If you've got CC or other high interest debt, make it go away
4. Emergency Reserves -- I believe they recommend 3-6 months, this varies by your individual families situation. Are you single income, kids, unique field that would be slow to secure a new job, etc.
5. Roth & HSA -- Start funding those highly tax advantaged accounts
6. Max out Retirement accounts -- Put (as they call it) your army of dollar bills to work growing in your tax advantaged accounts.
7. Hyper-Accumulation -- Non retirement accounts. 25% of gross income
8. Pre-Paid Future Expenses -- Kids college funds, etc.
9. Low Interest Debt -- Here is where you start paying off the house

These guys are really big on time in the market. They have really drilled down average rates of returns over the last century and coupled them with average risk tolerance by age bracket as you move through life towards retirement. From that they develop a wealth multiplier to hammer home the power of compounding.

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