The point of Stage 1
Before investing strategy matters, your cash flow matters. Your goal is a simple structure that funds bills, builds safety, grows investments, and still lets you enjoy life.
Calm rule: Money should move before you can spend it.
The three-bucket setup
- Operating: bills + a small buffer
- Safety: emergency fund + short-term needs
- Growth: investing (retirement and/or taxable)
Automation flow (example)
Paycheck hits →
1) Operating (bills + buffer)
2) Safety (until target met)
3) Growth (investing)
4) Guilt-free spending
Emergency fund baseline
A common target is 3–6 months of essential expenses. If your income is variable, lean higher. This fund prevents forced selling when life happens.