Milestone 6: Build wealth

Making your money work for you

With protection set, emergency fund funded, and debt under control, make your money work for you. That means investing. Not day-trading. Not crypto gambling. Simple, boring, proven investing.

Good news: the strategy that beats almost every hedge fund over 20 years is also the easiest. Buy low-cost index funds, contribute consistently, let time work. That's the whole playbook.

The math is simple. The discipline isn't. Most people quit before the curve bends.

Key points

• Retirement accounts first. A 401(k) with employer match is free money. Don't leave it on the table. Then a Roth IRA for most people.
• Index funds beat stock picking. Over 20+ years, broad market index funds outperform most actively managed funds. Lower fees, less stress, better results.
• Time in the market beats timing the market. Trying to buy low and sell high fails for almost everyone. Buying consistently every month wins by default.
• Start small if you have to. $50 or $100/month is enough to begin. Habit beats amount. Scale up as income grows.

The 15% target

Common goal: 15% of gross income once debt is under control. Can't hit that? Start at 1%. Raise it 1% every 6 months.