Author Topic: Allocation of spare cash  (Read 1808 times)


  • 5 O'Clock Shadow
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Allocation of spare cash
« on: March 14, 2017, 10:21:55 AM »
I apologize if this is a repeat question, but forum search doesn't seem to be working for me right now.

Has MMM ever recommended (or implied) a "ladder" or "progression" of where spare cash should go at the end of each month, in order to build up the stash? Something like:

1) (Maybe) minimal emergency fund
2) Pay off all debt (perhaps excluding mortgage)
3) If available, increase 401(k) contributions to get any matching by employer
4) If available, contribute to a Health Savings Account for tax-free medical expenses
5) Increase 401(k) contributions to annual max
6) Fill up an IRA
7) (Maybe, if applicable) start extra principal payments on mortgage
8) Regular, taxable brokerage account. Until infinity...

If at any given point you realize you have some spare cash at hand, you start with the first "rung of the ladder" and put it there. If that rung is already taken care of (or not applicable to your situation) you look at the next one. And you go down the ladder in this fashion.

To be clear: I'm not claiming the above is a good ladder. And I'm not interested in figuring out the "best" ladder, since that will probably differ with different life situations and individual dispositions. I just want to make sure I'm not missing certain rungs entirely since I didn't think of them. What does your ladder look like? Even if you don't follow a strict progression but split funds among multiple goals, I'd still be interested in hearing the categories.


  • 5 O'Clock Shadow
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Re: Allocation of spare cash
« Reply #1 on: March 14, 2017, 11:56:11 AM »
Hey koralcem.

Go to the Investor Alley forum and there is a thread pinned at the top that discusses this topic.

Mother Fussbudget

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Re: Allocation of spare cash
« Reply #2 on: March 14, 2017, 12:46:08 PM »
It's the Investment Order sticky thread...


  • 5 O'Clock Shadow
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Re: Allocation of spare cash
« Reply #3 on: March 14, 2017, 06:55:53 PM »
Thank you both. I imagined I couldn't be the first one with this question, but couldn't search.


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