Life stages · Topic hub

You just started earning real money.

UPDATED·APPLIES TOUnited States
For people who just started their first real job.

First job, first 401k, first real paycheck. The decisions you make in the next 12 months have more impact on your long-term wealth than almost any decision you'll make later. Not because the amounts are large. Because time is compounding right now.

This page covers personal finance fundamentals that apply regardless of your view on Bitcoin or fiat currencyfiat currencyMoney declared legal tender by a government, not backed by a physical commodity. Its value rests on trust in the issuing government.Full definition.

This page covers US-specific accounts and tax law. Outside the US? The priority order is the same; the account names differ (ISAIndividual Savings Account (ISA)A UK tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition in the UK, TFSATax-Free Savings Account (TFSA)A Canadian tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition/RRSPRegistered Retirement Savings Plan (RRSP)A Canadian tax-deferred retirement account; contributions reduce taxable income and growth is tax-deferred until withdrawal.Full definition in Canada, Super in Australia, etc.).

This page routes a first-job reader into four neighboring guides. For an 18-24-year-old starting a first paycheck, see New Graduate; for what to do week by week in month one, see First Job; for your 20s as a whole decade, see Your 20s; for once income is climbing at 25-35, see Early Career (25-35).

Short answer

You have income now. Maybe a first real job, maybe a raise that made things feel different. Open a Roth IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition. Contribute to your 401k up to the match. Build a 3-month emergency fund in a high-yield savings account. Save 15% of take-home minimum. Everything else is detail. The compounding window is open and it doesn't reopen if you skip it.

Start here

Three pages, in order. Read them before opening any account.

1 · THE FRAMEWORK
The order of operations
Before picking investments, know the sequence: starter emergency fund, employer match, high-interest debt, full emergency fund, IRA, full 401k, taxable.
2 · THE EARLIEST ACCOUNT
Open a Roth IRA at Fidelity, step by step
The single best financial move under 30 if you qualify. Tax-free growth for the next 40+ years.
3 · THE FOUNDATION
How to actually budget, fixed-first
Not a spreadsheet. A system that works on irregular income, with one automatic transfer doing 90% of the work.
Where each saved dollar goes, in order
Save at least 15% of take-home
  1. Starter emergency fund
  2. Employer matchfree money
  3. High-interest debtaggressive payoff
  4. Full emergency fund3 months of expenses
  5. Roth IRAtax-free growth for 40+ years
  6. Full 401kpast the match
  7. Taxable accountwhatever is left
Bitcoin comes once the emergency fund is built, the match is captured and high-interest debt is gone: small, consistent DCA.
The order of operations as a staircase, from a starter emergency fund up to a taxable account. The two highlighted steps are the big wins: the match is free money, and the Roth IRA, if you qualify, grows tax-free for 40+ years.

Your most important tools

Common questions

Do I pay off student loans or invest first?

If your loan rate is under 6%: invest up to your 401k match, then tackle the loans. Above 6%: aggressive payoff first. Always capture the match. Debt-type breakdown →

Should I open a Roth IRA or Traditional IRA?

Almost certainly Roth. You're likely in the lowest tax bracket you'll ever be in, so paying taxes now means tax-free withdrawals later. Open a Roth IRA →

How much of my paycheck should I save?

Minimum 15% of take-home. More if you want options before traditional retirement age. Savings rate → FI calculator →

What should I invest in?

FZROX in your Roth IRA to start. Total US market at zero expense ratioExpense ratioThe yearly fee a mutual fund or ETF charges, stated as a percentage of your investment and taken out of the fund's assets instead of billed to you. A 0.03% ratio costs $3 a year per $10,000 invested; a 1% ratio costs $100. Lower is better.Full definition. Add international and bonds later as the balance grows. Index fund explainer →

When should I buy Bitcoin?

After you have an emergency fund, no high-interest debt, and are contributing to your 401k up to the match. Then: small, consistent DCADollar-cost averaging (DCA)Investing a fixed amount on a regular schedule, such as $50 every payday, regardless of price. It spreads out when money enters the market and buys more units when prices are low, but it does not guarantee a better price than investing all at once, a profit or protection against loss.Full definition. Bitcoin is a long-term position, not your first move. Bitcoin for beginners →

Reading path

In order. Stop wherever the marginal value is less than your time.

  1. Personal finance order of operations · the full framework
  2. Budgeting · build the foundation
  3. Account types · understand each tax-advantaged account
  4. Open a Roth IRA · do it today, $1 minimum
  5. Index funds · what to put in it
  6. Bitcoin for beginners · when you're ready
  7. Financial planning by decade · the 20s and 30s sections

Where to go from here

Do next

401(k) Match Optimizer

Finds the exact contribution percentage to get your full employer match.

Read next

Early Career (25-35)

The 25 to 35 plan once income starts climbing.

Explore further
  • First JobWhat the lines on your first pay stub and benefits enrollment actually mean.
  • New GraduateThe 18-24 version of this same first-12-months priority order.
  • Order of OperationsThe full priority order for every dollar, beyond the first job.

Last updated . Not financial advice. Do your own research. Disclosures · How pages are reviewed

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