Your money, step by step

Each step protects the one after it. Bills come first because overdraft fees and late payments eat everything else. A small cushion keeps surprises off your credit card. High-interest debt costs more than savings usually earn, so it comes before extra saving. The employer match is part of your pay, so it comes next. A full emergency fund then lets you invest without needing to cash out early. Investor.gov, the SEC's education site, also lists paying off high-interest debt and saving for a rainy day ahead of investing. This is a common starting point, not a rule, and your situation may call for a different order.

There is no official cutoff. Payday loans are the clearest case: the CFPB says a typical two-week payday loan with a $15 per $100 fee works out to an APR of almost 400 percent. The CFPB also says credit card APRs range from about 12 percent to about 30 percent, so a balance you carry from month to month belongs in this bucket. A mortgage or a low-rate student loan usually isn't what this step means. A simple test is to compare the loan's rate with what a savings account pays.

Start small, then build up. Many guides use $1,000 as a starter goal and three to six months of essential expenses as the full target. The CFPB says the right amount depends on your situation, so think about the unexpected bills you've had before and what they cost. If your income swings or others depend on you, aim for the high end of that range or beyond.

Usually pay off high-interest debt first. Paying down a card at 24 percent APR saves you 24 percent a year in interest, and no savings account or fund can promise a return like that. An employer match is the common exception, because it adds money to your account right away, so a typical approach is to take the match while you pay the card down. Low-rate debt is different. With a mortgage at 4 percent, the choice is closer and depends on your goals and how much risk you're comfortable with.