Steps for financial success

Step 1 - Budget

Figure out how much you spend each month on all your needs - rent, utilities, insurance, food, transportation, etc.

Step 2 - Cover expenses

Keep at least 6 months expenses in a savings account or CD.  This is important for unexpected expenses (car repair, big purchase, etc.) or if you lose your job.

Step 3 - Save for retirement

Once you have that saved up, contribute to a retirement account - 401k,  IRA, etc., until that contribution is maxed out. 2024 limits are $23,000 and $7,000/year for a 401k and IRA, respectively.

Step 4 - Have fun and build wealth

Once you have 6 months expenses saved and are maxing out retirement plans, have some fun. Buy things you want, go on vacation, or just save more and increase your net worth so you can retire earlier. All money, at that point, should go into index funds in a taxable account.

Step 5 - Get risky

Get riskier with individual stocks, Bitcoin, whatever other investments you can find and want to potentially lose money at.