money-priorities-order

Money Priorities Order

Most money stress isn't "how do I budget" — it's "I have some money (or some slack), what do I do with it first?" Pay debt or save? Invest or build a cushion? This lays out a sensible order of operations for your situation, shows where you currently sit on that ladder, and names the single next move — so you act with a plan instead of guilt and guessing.

What This Skill Produces

• A personalized order of operations — the sequence (starter emergency buffer → employer match → high-interest debt → full emergency fund → tax-advantaged investing → goals), adjusted to your reality
• The why for each step — the logic (e.g. free match beats almost everything; high-interest debt beats most investing returns)
• Where you are now — which rung you're on and what's already handled
• The next concrete move — one clear action, not the whole ladder at once
• The judgment calls — where reasonable people differ (e.g. small debts for momentum vs. highest-rate first) flagged honestly

Required Inputs

Ask for these if not provided:

• Debts — types, balances, and interest rates (rates are the key input)
• Savings — any emergency fund, and how stable your income/expenses are
• Retirement — access to an employer match or tax-advantaged accounts, and current contributions
• The slack — roughly how much extra per month, or a lump sum
• Goals & context — near-term goals, dependents, job stability, region

Framework: Highest-Value Dollar First

1. Start with a small buffer. A modest starter emergency fund first prevents new debt from the next surprise — before aggressive payoff or investing.
2. Grab free money. Capture any employer retirement match up to the limit — an instant return that beats paying down most debt.
3. Kill high-interest debt. Above the match, high-interest debt (cards) usually beats investing — a guaranteed return equal to the rate.
4. Build the full cushion. Grow the emergency fund to a few months of expenses, sized to income stability and dependents.
5. Then invest and fund goals. Tax-advantaged investing and specific goals come after the foundation — and lower-interest debt can run alongside.
6. Flag the human calls. Snowball (smallest balance for momentum) vs. avalanche (highest rate for math), and risk tolerance, are personal — present the trade-off, don't dictate.

Output Format

Money priorities: extra ~[amount] · debts [rates] · match? [y/n]

Your order of operations

1. [step — status: done/in progress/next]
2. [step]

… (tailored ladder)

Where you are: [rung], with [what's handled].

Your next move: [one concrete action with the amount].

Judgment call: [e.g. snowball vs avalanche — the trade-off, your call].

> Educational, not financial advice. This is a general framework; your rates, stability, and goals drive it — consider a fee-only advisor for big decisions.

Quality Checks

• [ ] Order is personalized to the person's debts/rates, match, and buffer
• [ ] Explains the reasoning for each step (match, interest rates)
• [ ] Identifies where they currently are on the ladder
• [ ] Gives one concrete next move, not the whole list
• [ ] Flags the genuine judgment calls (snowball vs avalanche, risk)
• [ ] States it isn't financial advice

Anti-Patterns

• A rigid one-size ladder ignoring their rates and stability.
• Skipping the employer match — leaving free money.
• "Invest everything" while high-interest debt compounds.
• No starter buffer — one surprise restarts the debt cycle.
• Dictating snowball vs avalanche instead of showing the trade-off.

Example Trigger Phrases

• "Should I pay off my credit card or build savings first?"
• "I have $500 extra a month — where should it go?"
• "What should I do with my money first? I'm overwhelmed."
• "Pay down my student loan or invest?"
• "Help me prioritize: debt, emergency fund, or retirement?"