Step 0: Budget and reduce expenses, set realistic goals

Step 1: Build an Emergency Fund

Step 2: Employer Matched Pension Contributions

Step 3: Pay down debts

Step 4: Save for Retirement

Start Flowchart

Know where your money is going by creating a solid budget plan

Buy Food

Pay Rent/Mortgage

Pay Essential Bills

Pay Income Dependant Bills
(like transport to work)

Make minimum payments on all debts

Build basic Emergency Fund
(one month's outgoings)

Pay non-essential bills in full
(internet, phone, TV)

Do you have any high interest (10%+) debt?

Yes
No

Consider Avalanche Method to pay off highest interest debt first.

Okay, what's next?

Ensure you are (auto)enrolled in company pension. Take advantage of any company contributions available.

Build basic Emergency Fund
(3-6 months' outgoings)

Do you have any moderate interest (4%+) debt?

Yes
No

Consider Avalanche Method to pay off highest interest debt first.

Sure, then what?

Are you saving to buy your FIRST home?

Yes
No

Consider saving via a Help to Buy: ISA / LISA

I'll look into it. What now?

Do you have short term goals?

Yes
No

Consider high interest current or regular savers accounts

Will do. Let's keep moving...

Do you have long term goals?

Yes
Nope!

Congrats. Get out there, spend and enjoy your money!

Awesome! Can I continue anyway?

Is one of your goals retirement?

Yes
No / Retiring Early

Are the total costs of your employer pension ≤ 0.5%?

Yes
No

Open a SIPP and invest in low-cost global index trackers

Is your pension full or are you on track for £1m on your current contributions?

Yes
No

Additional contributions to company pension

Is your pension full or are you on track for £1m on your current contributions?

Yes
No

Are you on track for your retirement goal?

Yes
No

Have you maxed out your SIPP?

Yes
No

Increase contributions to SIPP or company pension

Continue...

S&S ISA
Invest in low-cost global index trackers

Buy the same things in your S&S ISA but in a taxable account harvest dividend / CGT allowance

Seek financial advice!

High Risk Investments to reduce tax: VCT / EIS / SEIS