Grow Steps are steps to get to and maintain financial independence.
1) Emergency Fund Minimum $1000
Having an emergency fund of $1000 is a good start. Further down the road, you will want your emergency fund to be 6 months of your monthly expenses.
Make sure this is in a high-yeild savings account.
2) Avoid Bad Debt
Don’t carry balances on credit cards, avoid credit cards if you need to. Also be careful with buying cars, you do not need the latest and greatest or a fancy sports car. You should be paying off any bad debts that you have.
3) Plan for Retirement
Have a 401K or similar retirement fund with a 10-15% match.
Having a Roth 401K saves on the tax burden when you retire also.
If you don’t have access to 401k an IRA or Roth IRA is good alternatives.
4) Grow/Fully Fund Your Emergency Fund
Have your emergency fund be a minimum of 6 months of your monthly expenses.
5) Good Debt
Paying down good debt such as the payment for your reasonable car.
Paying down your house is not as cost effective. That will be coming in a later step.
6) Grow Alternative Income Streams/Take Some Risk in Life
Have a brokerage account and invest in high dividend good company stocks. Start your own small business to pursue your passion. Find high yield savings accounts separate from your emergency fund to have interest income. Pursue your dreams. If your dream is to pay off your house, this is where you pay it off.
7) Max Out Retirement Accounts
Once you reach this point, you have your alternative income and your emergency fund is up, you can max out your contribution to your retirement accounts to the legal limit to prepare for retirement.