Probably not the best sub for this, but fuck it. I trust a lot of what TRP has to say.

I read an article recently that stated you need to do three things to achieve financial stability. Not in any particular order, either.

  1. Eliminate debt

  2. Save for an emergency fund of 6 months or more

  3. Contribute to a 401k, IRA, or some type of retirement account.

Do these three things, and then you will be stable and prepared to invest. It made a lot of sense to me.

Where I stand, it will likely take up to 5-7 years to reach this level.

Here is my question. Which one of these three is most important?

Personally, I feel that saving the emergency fund should come first, then eliminate debt, then save for retirement.

Thoughts?