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Pay Yourself First: How to Build Wealth on Autopilot

Monthly Money Man on March 20, 2026

When I was managing money for clients, I saw a pattern that repeated itself over and over again.

The people who built real wealth weren’t necessarily the ones making the most money. They were the ones who had set up systems that worked automatically, without requiring daily willpower or discipline.

The most powerful system? Pay yourself first.

You’ve probably heard this phrase before. Maybe you’ve even tried it. But here’s what I learned watching hundreds of people succeed (and fail) at this: it’s not about intention. It’s about mechanics.

What “Pay Yourself First” Actually Means

It’s simple: before your paycheck hits your checking account and becomes “available” to spend, a portion of it goes somewhere else. To savings. To investments. To your future self.

Not what’s left over at the end of the month. Not “if there’s extra.” First.

I remember sitting with a couple in their early 30s. They made good money—combined household income over $120,000. But every month, they felt broke. Every single month.

“We just don’t know where it goes,” they told me.

I asked them to show me their savings rate. Zero. Because they were trying to save what was left over. And there’s never anything left over when you do it that way.

The Psychology Behind Why This Works

Here’s the truth about human behavior and money: we spend what we see.

If you have $3,000 in your checking account, you’ll find a way to spend closer to $3,000. If you have $2,400 in your checking account, you’ll find a way to live on $2,400.

The difference? That $600 that never showed up in checking went straight to savings the day your paycheck deposited.

This isn’t about deprivation. It’s about making the right choice the easy choice. You’re not fighting yourself every month trying to be disciplined. You made the choice once, set up the system, and now it runs on autopilot.

How to Set Up the System

Step 1: Decide on a percentage

Start with 10% if you’re new to this. Already saving? Push it to 15% or 20%. The exact number matters less than the fact that it’s automatic and consistent.

Step 2: Split your direct deposit

Many payroll systems let you split your direct deposit between multiple accounts—check with your HR department to see if yours does. This is the absolute best way to do it.

Option A: Have your employer deposit 10% directly into your savings account and 90% into checking
Option B: If your employer doesn’t allow splits, set up an automatic transfer on payday from checking to savings

Step 3: Make it immediate

The transfer should happen the same day you get paid—or before you even see the money. If you wait until the 15th of the month to manually move money around, you’ve already spent it in your head.

Step 4: Treat it like a bill

That 10% (or 15%, or 20%) isn’t optional. It’s not negotiable. It’s the first bill you pay every month. The bill is to your future self.

Where the Money Should Go

This depends on where you are in your financial journey. Use this priority order:

First priority: Build your Safety Net #1—one month of expenses in cash. Until you have this, every dollar you’re paying yourself first goes here.

Second priority: Get your employer match in your 401k or 403b (if it’s 50% or higher). This is the only time I’ll tell you to invest before paying off high-interest debt. Here’s why: if your employer matches 50 cents on every dollar you contribute, that’s an instant 50% return. You can’t get that anywhere else. You also can’t go back in time and claim matches you missed.

Even if you’re carrying credit card debt at 18%, you need to contribute enough to get that full match. Yes, you’re still paying interest on your debt. But you’re also getting free money that will compound for decades. We’ll talk more about balance transfers and refinancing strategies in August—there are ways to lower that interest rate on your debt. But there’s no way to recapture an employer match you let slip away.

Plus, getting that match forces you to learn to live on what’s left. That’s the system working.

Third priority: Pay off high-interest debt (anything over 10%). If you’re carrying credit card debt at 18% or 24%, paying that down is paying yourself first. You’re getting an immediate 18% return. In August, we’ll dive deep into avalanche vs snowball methods and strategies for tackling this.

Fourth priority: Max out your Roth IRA. Once you’ve got your cash reserve built and you’re getting your employer match, this is your next move. We’ll cover Roth IRAs in detail in April and May, but the short version: tax-free growth for the rest of your life. If you got a tax refund and you’ve checked the first two boxes, this is where that money should go.

Fifth priority: Go back to your 401k and increase your contribution beyond the match. Push toward 15% total retirement savings.

What If You Can’t Afford 10%?

Start with 5%. Or 3%. Or even 1%.

The amount is less important than the system. Get the mechanics in place now. A year from now when you get a raise, increase it to 6%. Then 8%. Then 10%.

I’ve seen people go from saving nothing to saving 20% of their income. It didn’t happen overnight. It happened by setting up the system and then adjusting the percentage every time their income increased.

The Backpack Check

Think of this as one of the most important items you’re carrying in your financial backpack: the habit of paying yourself first.

It’s not heavy. It doesn’t require daily attention. But it’s the difference between arriving at the summit with resources—or arriving exhausted and empty-handed.

Set it up once. Let it run. Watch what happens over the next five years.

Action step for this week: Log into your bank or payroll system today. Set up that automatic transfer. Even if it’s just 5% to start. Make the decision once so you don’t have to make it every month.

See you at the top.

Fun Money — Allow Yourself to Breathe and Take in the View

Monthly Money Man on February 27, 2026

In January, we built our basecamp. We mapped out the year, set our financial intentions, and committed to the climb. In February, we focused on building our safety net — the cash reserves that catch us when life, as it always does, throws something unexpected in our path.

But here’s something every experienced climber knows that the guidebooks don’t always tell you. The mountain will break you if you never stop to breathe. If you put your head down and grind every single day without a moment to look up and take in the view, you won’t make it to the top. Not because the mountain beat you, but because you forgot why you started climbing in the first place.

That’s what this week is about. Fun Money.

Why Fun Money Is Not Optional

I want to be direct with you. Fun Money is not a reward for when you’ve “made it.” It’s not something you allow yourself after you’ve checked every financial box. Fun Money is a required line item in your budget — as essential as your rent, your groceries, and your emergency fund.

Here’s why. One of the most common reasons people abandon their financial climb isn’t because they lack discipline or intelligence. It’s because the journey feels like punishment. Every dollar is accounted for, every purchase is scrutinized, every impulse is denied. That works for about three weeks before human nature wins and the budget gets thrown out the window entirely.

The most successful financial plans I’ve ever seen — and after nearly three decades of living, studying, and advising on personal finance, I’ve seen a lot of them — are the ones that build enjoyment into the system from the beginning. Not as an afterthought. Not as a cheat day. As a planned, intentional, guilt-free category in the budget.

At Monthly Money, we’re not just about reaching the top. We’re about enjoying the climb. Because what’s the point of summiting a mountain you hated every step of?

Where This Idea Comes From

I’ll be honest with you about something personal. I grew up in a home where money was a constant source of tension. I watched my parents argue about finances more times than I can count, and eventually that financial stress contributed to their divorce. I was eleven years old when our family split apart, and I made a promise to myself that day — I would learn everything I could about money so I would never feel that powerless again.

But I also made a quieter promise. That when I built my own family, money would not be the thing that tore us apart.

My wife and I have been together for a long time, and I won’t pretend we’ve never had financial disagreements. Every couple does. But one of the systems that has genuinely protected our marriage — not just our budget — is Fun Money. We built it into our financial plan from the beginning, and it has diffused more potential arguments than I can count.

How the System Actually Works

Here’s the practical framework my wife and I use, and that I recommend as a starting point for any couple.

We set aside 3% of our combined net income — that’s take home pay after taxes — every single month. That 3% gets split in half. Half goes into her individual savings account. Half goes into mine. It happens automatically through a scheduled transfer so we never have to think about it or negotiate it in the moment.

That money is earmarked for one purpose only — to spend on whatever each of us finds meaningful, no questions asked and no justification required. If she wants to buy a piece of art for the living room or a pair of earrings I’d never understand the appeal of, that comes from her Fun Money. If I want to book a fly fishing trip or a river rafting adventure, that comes from mine. We don’t debate it. We don’t negotiate it. We simply say “it’s Fun Money” and move on.

I cannot overstate how many arguments that three word phrase has ended before they ever started.

Now, 3% is a baseline and a starting point — not a rule carved in stone. The best percentage is the one that two spouses can genuinely agree on and actually afford. If 3% of your net income works out to $100 a month, that’s $50 each. That might not sound like much, but here’s the beauty of the system — you don’t have to spend it every month.

I am a natural saver. There have been stretches of six months or more where I didn’t touch my Fun Money account at all, just letting it accumulate quietly while I focused on other things. And then one day I’d look at that balance and book something that genuinely filled my soul — a day of fly fishing in a mountain river, a challenging hiking expedition, an outdoor experience that reminded me why I work as hard as I do. I don’t place much value on material possessions. What I value is experience, adventure, and time in the wild. My Fun Money account makes that possible without a single dollar coming out of our family budget or a single conversation that starts with “do we really need to spend money on that?”

My wife has her version of that same freedom. And because we both have it, we’ve never had to fight over it.

Tony fly fishing in a mountain river enjoying his Fun Money outdoor adventure — This is my Fun Money in action — a trip to a mountain river that I saved up for month by month. Worth every penny.

What This Looks Like in Your Budget

If you’re single, Fun Money still belongs in your budget — it just looks a little different. It’s the category that gives you permission to spend on what brings you joy without derailing everything else you’re building. It’s the concert ticket, the weekend trip, the dinner out with friends that doesn’t send you into a guilt spiral afterward.

The Monthly Money Method is built around capturing the difference between what comes in and what goes out, then deploying that difference strategically. Fun Money is a strategic deployment. It’s not waste. It’s not weakness. It’s the investment you make in your own sustainability as a person who is playing a very long financial game.

The climbers who make it to the top are not the ones who never rest. They’re the ones who know when to rest, how long to rest, and how to use those moments to come back stronger for the next section of the climb.

Your Assignment This Month

Look at your current budget and find Fun Money. If it’s not there, add it. Start with 3% of your monthly net income and divide it equally if you have a spouse or partner. Set up an automatic transfer to a separate savings account on the same day every month — payday works well. Name the account something that makes you smile. And then give yourself genuine permission to spend it on whatever matters most to you, without guilt and without explanation.

The climb is long. The view along the way is part of the reward.

See you at the top.

Expect the Unexpected. Plan for the Unexpected.

Monthly Money Man on February 20, 2026

Last year, I was hiking in Oregon with my family. I was leading the group — map in hand, eyes down, mentally calculating how far we had left before we lost the light. I was so locked in on our destination that I stopped paying attention to where I was actually stepping.

Then I tripped over a rock. Nothing serious — a small cut on my knee, a bruised ego, and a lesson I won’t forget.

I was so focused on where we were going that I forgot to focus on where I was.

Your financial journey works exactly the same way.

The Trail Is Never Perfect

By now, you’ve done the math. You know what your safety net needs to look like. You’ve set your goals — maybe it’s one month of expenses, maybe you’re pushing toward three. That destination is clear.

But here’s what every experienced hiker knows and what every seasoned financial advisor has seen firsthand: the trail is never as clean as the map makes it look.

Something will break down. The car. The furnace. A appliance that quits on a Tuesday with no warning. Someone loses a job. A medical bill arrives that you didn’t see coming. These aren’t worst-case scenarios — they’re just life. The only thing unpredictable about the unexpected is the timing.

This is exactly why your cash reserve exists. Not as a punishment for spending. Not as money you’re hiding from yourself. It’s your trail cushion — the thing that keeps one stumble from becoming a serious fall.

Look Around You

Take a honest look at your life right now. Is it just you? A partner? Kids? A house, a car, maybe two? A pet that just became very expensive?

Here’s the reality: the more responsibilities you carry, the more surface area you have for the unexpected to find you. That’s not pessimism — that’s math. More moving parts means more chances for something to need attention, and attention usually costs money.

This doesn’t mean you live in fear of what might happen. It means you respect the trail enough to be prepared for it.

The Mindset Shift That Changes Everything

Most people treat saving as something they’ll do more of when things get easier — when they earn a little more, when the bills slow down, when life settles. It never settles. The Ascenders who build real financial security don’t wait for perfect conditions. They decide that saving is non-negotiable first, and they build their spending around what’s left.

That means paying yourself first — a minimum of 15% toward your future, whether that’s your emergency fund right now or your retirement account once your safety net is solid. It means automating what you can so the decision is already made before temptation shows up. And it means accepting that some wants get delayed so that your future self has options.

This week isn’t about exact numbers. It’s about adopting a money mindset — one that expects the trail to get rough and plans accordingly.

Focus on the Journey

The hardest part of any long hike isn’t the elevation. It’s the mental discipline of staying present when you’re tired, when the destination feels far away, and when the path isn’t what you expected.

I learned that lesson on a trail in Oregon with a cut on my knee. The destination hadn’t changed. But I’d stopped respecting the journey that was going to get me there.

Set your goals. Know your destination. Then put your eyes back on the trail.

See you at the top.

The Power of $100 at a Time: Why Your Emergency Fund Starts Smaller Than You Think

Monthly Money Man on February 6, 2026

The Bottom Line Up Front: Building your first $500 doesn’t require huge sacrifices or perfect planning. It requires understanding that small amounts—$50, $100, $200—compound faster than you think. Here’s why thinking smaller might be the key to saving bigger.

If you’re reading this, I need you to pay attention—especially if you haven’t been watching economic conditions closely.

For those who have been paying attention, you already know: a storm is brewing.

Just like any mountain journey, your financial climb won’t always happen under clear skies. Sometimes the sun shines. Sometimes the trail is perfect. And sometimes—like right now—clouds gather on the horizon.

Unemployment is ticking up. Inflation is climbing. Market volatility is increasing. I could list a dozen other warning signs, but I won’t. There are enough news outlets drowning you in doom. That’s not my job.

My job as your guide is simple: inform you, educate you, and help you prepare.

And right now, preparation means one thing: building your cash reserve.

February’s focus on emergency savings wasn’t random. It wasn’t just another financial planning exercise. It was strategic. Because when storms hit—and they always do eventually—the climbers who survive are the ones who prepared while the sun was still shining.

Even when conditions are unstable, even when the news is bad, even when it feels like the worst time to be thinking about money—that’s exactly when you need to be working on your safety net.

You can’t control the economy. You can’t control inflation or unemployment or market crashes.

But you can control whether you have one month of cash when the storm arrives.

That’s what we’re building. Not because the sky is falling. Because the weather changes, and smart climbers prepare for it.

The Lesson I Taught My Son About Becoming a Millionaire

A few years ago, my son asked me how people become millionaires.

He was thinking about lottery winners and tech founders and inherited wealth—all the dramatic stories you see on TV.

I told him something simpler: “You want to know how to become a millionaire? Save or earn $1,000. Then do it a thousand times.”

He looked at me like I was oversimplifying.

But I wasn’t.

A million dollars isn’t one impossible number. It’s a thousand achievable numbers stacked on top of each other.

Getting to $1,000? Most people can figure that out. It might take a month, or three months, or six months depending on where you’re starting. But $1,000 is tangible. You can see it. You can plan for it. You can reach it.

And if you can do it once, you can do it again.

Do it a thousand times over your lifetime—through saving, earning, investing—and suddenly you’re a millionaire.

The impossible becomes possible when you break it into pieces small enough to actually accomplish.

That’s the lesson I taught him. And it’s the same lesson I’m teaching you about your emergency fund.

Your Safety Net Works the Same Way

Most people look at “one month of emergency savings” and see an intimidating number.

$2,000. $3,000. Maybe more.

That feels impossible when you’re starting with zero. So they don’t start at all.

But here’s the truth: you don’t build $2,000 all at once. You build it $100 at a time.

Your goal this month isn’t $2,000. It’s $100.

Then do it again. And again. And again.

$100 twenty times = $2,000.

Suddenly, the math doesn’t feel so impossible.

Why $100 Matters More Than You Think

Let me show you what happens when you focus on $100 at a time instead of the full amount.

Scenario 1: Thinking Big

You set a goal: “Save $2,500 for my one-month emergency fund.”

Week 1: You save $75. You look at your balance: $75. You’re 3% of the way there. It feels pointless.

Week 2: You save another $80. Balance: $155. Still only 6% there. You’re discouraged.

Week 3: Life happens. Car needs gas. You skip saving this week.

Week 4: You look at your $155 and think, “This is taking forever. What’s the point?”

You quit.

Scenario 2: Thinking Small

You set a goal: “Save $100 this month.”

Week 1: You save $75. You’re 75% of the way there. That feels real.

Week 2: You save $25. You hit $100. Goal complete. You celebrate.

Next month: New goal. Save another $100.

Week 1: You save $80. You’re 80% there again.

Week 2: You save $20. Goal #2 complete. You now have $200.

See the difference?

Same amount of money. Same timeline. Completely different psychology.

When you break the goal into $100 chunks, you win early and often. And winning creates momentum.

The Math of Small Wins

Here’s the simple truth: three $100 wins feel better than one incomplete $300 goal.

Most people don’t stop at $100 once they start. They hit $100 and keep going because they’ve built momentum.

You aim for $100 in Month 1. You hit $140.
You aim for $100 in Month 2. You hit $120.
You aim for $100 in Month 3. You hit $150.

You targeted $300 over three months. You actually saved $410.

That’s the power of thinking smaller to achieve bigger.

The First $500 Changes Everything

I’ve watched this pattern play out hundreds of times with clients.

The hardest part of building an emergency fund isn’t getting from $500 to $1,000. It’s getting from $0 to $500.

Because $0 to $500 is where you prove to yourself that you can do this.

It’s where the mental shift happens from “I’m trying to save” to “I’m someone who saves.”

And once you hit $500, something psychological shifts.

At $0: An unexpected $300 expense is a crisis. You panic. You reach for a credit card.

At $500: An unexpected $300 expense is still annoying, but it’s not a crisis. You have options. You can cover it and rebuild.

$500 isn’t financial independence. But it’s financial breathing room.

It’s the difference between panic and problem-solving.

And you get there $100 at a time.

Your Focus This Week: Hit Your Next $100

Forget about the full amount for a second.

What’s your next $100 milestone?

If you’re at $0, your goal is $100.

If you’re at $150, your goal is $250.

If you’re at $320, your goal is $400.

Pick the next hundred-dollar milestone and focus everything on hitting it.

Here’s how:

Option 1: Find it in your spending
Look at this week’s expenses. Where’s $25? Can you skip two restaurant meals? Cancel one thing? Buy generic instead of brand name at the grocery store?

Do that four times = $100.

Option 2: Earn it
Can you pick up one extra shift? Sell something you don’t use? Do one freelance job? Babysit one weekend?

One small gig = $100.

Option 3: Capture it
Got a birthday coming up? Tax refund? Work bonus? Unexpected cash?

Any windfall = straight to the safety net until you hit your next $100.

The method doesn’t matter. What matters is hitting that next $100.

What Progress Actually Looks Like

Real progress isn’t a straight line. Here’s what it actually looks like:

Weeks 1-2: Save $125 total.
Week 3: Emergency drains $40. Back to $85.
Weeks 4-6: Rebuild to $300.
Week 7: Skip saving (family expenses). Still at $300.
Week 8: Save $80. Now at $380.

It’s messy. There are setbacks. But the trend is up.

By Week 8, you’re almost at $400—even with an emergency and a skipped week.

That’s $100 at a time adding up.

The Storm Makes This Even More Important

Remember what I said at the beginning: a storm is brewing.

When economic conditions get rough, the people who survive aren’t the ones with the highest incomes or the fanciest investment portfolios.

They’re the ones with cash reserves.

$500 in the bank doesn’t sound like much when times are good. But when unemployment rises, when hours get cut, when unexpected expenses pile up—$500 is the difference between weathering the storm and going under.

You can’t control what’s happening in the economy.

But you can control whether you have your next $100 saved before the storm hits.

Your Action Step This Week

This week, I want you to do one thing:

Hit your next $100 milestone.

Not your full emergency fund goal. Just the next $100.

If you’re at $0, get to $100.
If you’re at $200, get to $300.
If you’re at $450, get to $500.

One hundred dollars. That’s it.

Find it, earn it, or capture it. But get to that next hundred.

Because here’s what I know from watching hundreds of people build their safety nets:

The ones who succeed aren’t the ones who save the most at once.

They’re the ones who keep hitting the next small goal, over and over again, until the small goals turn into something substantial.

$100 at a time might not feel like much.

But do it twenty times, and you’ve got $2,000.

Do it a hundred times, and you’ve got $10,000.

Small numbers compound. You just have to start.

See you at the top.

Your First Financial Safety Net: Why One Month of Cash Changes Everything

Monthly Money Man on January 30, 2026

The Bottom Line Up Front: Before you invest, before you pay extra on debt, before you do anything else—build one month of cash reserves. Not $1,000. Not three months. One month. Here’s why it matters and how to do it.

If you’ve been following along with Monthly Money since January, you’ve spent the last month tracking your spending, identifying your leaks, and building systems that work when motivation fades.

Now comes February’s mission: building your first safety net.

In my years as a financial advisor, I used a simple visual to help clients understand cash reserves. I’d draw layers of safety nets—each one positioned to catch you before you fall to the next level down. Think of a mountain climber with multiple protection systems. If one fails, the next one catches you.

Most people want to build the highest net first. That’s a mistake.

Today, I’m going to show you how to build your first safety net—one month of cash reserves—and why it’s the most important financial decision you’ll make this year.

The Safety Nets: Your Layers of Financial Protection

Here’s how the safety net layers work when you’re climbing your financial mountain:

Safety Net #1: One Month of Essential Expenses ← You build this first
What you need to survive for 30 days: rent, food, utilities, minimum debt payments

Safety Net #2: Three Months of Essential Expenses
Same as Net #1, but 90 days of coverage

Safety Net #3: Six Months of Total Expenses
All your expenses, including the non-essentials, for half a year

Safety Net #4: Investment Reserve
Extra cash beyond six months that allows you to take calculated financial risks

Most people skip Safety Net #1 and try to build Net #3 immediately. They set a goal of “save $10,000” or “build a six-month emergency fund” and then get overwhelmed and quit.

Don’t do that.

Your only job in February is to build Safety Net #1: one month of essential expenses in cash.

Why One Month Changes Everything

When I worked with clients, the single biggest transformation I saw wasn’t when they hit six months of savings. It was when they hit one month.

Here’s what changes:

You stop living paycheck to paycheck. If your paycheck is late or there’s a processing delay, you’re not panicking. You have 30 days of runway.

You can handle small emergencies without debt. Car repair? Unexpected medical bill? You pull from your safety net instead of your credit card.

You gain decision-making power. When you have one month of cash, you’re not desperate. You can negotiate. You can say no. You can think clearly instead of reactively.

You break the panic cycle. Financial stress isn’t just about the amount you have—it’s about the fear of falling. One month of cash means you won’t fall all the way to zero if something goes wrong.

One month isn’t enough to quit your job or survive a long unemployment. But it’s enough to breathe. And breathing room is what most people are desperately missing.

How to Calculate Your One-Month Safety Net Goal

This is simpler than you think.

Pull up your tracking from January (you’ve been tracking, right?). Add up only your essential expenses for one month:

Essential Expenses	Your Amount
Rent/Mortgage	$_______
Utilities (electric, water, gas, internet)	$_______
Groceries (not eating out)	$_______
Transportation (gas, car payment, insurance)	$_______
Minimum debt payments	$_______
Insurance (health, life, etc.)	$_______
TOTAL = Your One-Month Goal	$_______

Notice what’s NOT on that list:

Streaming subscriptions
Eating out
Shopping
Entertainment
Gym memberships
Anything you could cut in an emergency

Your goal isn’t “one month of your current lifestyle.” It’s “one month of survival expenses.”

For most people, this number is $1,500-3,000. Not $10,000. Not six months. Just one month of the bare essentials.

Write that number down. That’s your February summit.

The Three Ways to Build It (Pick One)

You don’t need to be creative here. There are three ways to build your first safety net. Pick the one that fits your situation:

Method 1: The Leak Redirect

Remember those financial leaks you identified in January? The subscriptions, the convenience spending, the “just this once” purchases?

Redirect that money to your safety net instead.

If you found $300/month in leaks, that’s your safety net fuel. In one month, you’ll have $300. In two months, $600. You get the idea.

Set it up: Create an automatic transfer for the amount you’re saving from cutting leaks. Make it happen the day after your paycheck hits.

Method 2: The Paycheck Split

Every time you get paid, automatically move a percentage to your safety net account before you pay anything else.

Start with 10-15% of each paycheck. If you’re paid bi-weekly, that’s 10-15% of 26 paychecks this year.

Set it up: Schedule automatic transfers in your banking app. Treat it like a bill that must be paid—because it is. You’re paying your future self. Your paying for a safety net.

Method 3: The Windfall Capture

Got a tax refund coming? Bonus? Birthday money? Side hustle income?

Every dollar that isn’t from your regular paycheck goes straight to the safety net until you hit your one-month goal.

No debate. No “I’ll save half and spend half.” 100% to the safety net.

The fastest route: Combine all three methods. Redirect your leaks, split your paycheck, and capture windfalls. You’ll hit one month of cash in 6-12 weeks instead of 6-12 months.

Where to Keep Your Safety Net

This money needs to be:

Liquid (you can access it immediately)
Safe (not invested in stocks or crypto)
Separate (not sitting in your checking account tempting you)

Best option: A high-yield savings account (HYSA) at a different bank than your checking account.

As of early 2025, HYSAs are paying 3-5% interest. That means your safety net actually grows while it sits there. Compare that to a regular savings account paying 0.01%.

Good HYSAs to research:

Marcus by Goldman Sachs
Ally Bank
Barclays Online Savings
Openbank by Santander

Don’t overthink this. Pick one, open the account this week, and set up your automatic transfer.

What Happens After You Hit One Month?

Once you’ve built your first safety net, you don’t stop. You build the next layer of protection.

But that’s not February’s job. February’s job is Safety Net #1.

Here’s the path forward:

✅ February-April: Build one month of essential expenses (Safety Net #1)
→ May-August: Build to three months of essential expenses (Safety Net #2)
→ September-December: Build to six months of total expenses (Safety Net #3)

By the end of 2026, you’ll have multiple layers of protection and genuine financial security.

But it starts with one month. Right now. In February.

Your February Action Plan

Here’s what you’re doing this week:

1. Calculate your one-month essential expenses (use the table above)

2. Choose your funding method (leak redirect, paycheck split, or windfall capture)

3. Open a high-yield savings account (if you don’t already have one separate from checking)

4. Set up automatic transfers (schedule them for the day after payday)

5. Name your account (seriously—nickname it “Safety Net” or “Do Not Touch” so you remember its purpose)

That’s it. Five steps. All doable this week.

Then you let the system run. Every paycheck, money automatically moves to your safety net. You don’t think about it. You don’t decide about it. It just happens.

And by the end of February, you’ll have taken your first real step toward financial security.

The Real Reason This Matters

I’ve watched hundreds of people try to build wealth without a safety net.

They invest in the stock market and then have to sell at a loss when their car breaks down.

They pay extra on debt and then go deeper into debt when they lose their job.

They follow all the “right” advice and still feel financially fragile because they have no buffer.

You can’t climb a mountain without a safety rope.

Your first month of cash reserves? That’s your first net. It’s what keeps you from falling all the way back to zero when something goes wrong—and something always goes wrong.

Build your first safety net. Then keep climbing.

See you at the top.

Time to Catch Your Breath, Ascenders

Monthly Money Man on December 26, 2025

Here we are – the final stretch of 2025. If you’ve been following along with Monthly Money this year, you’ve checked your accounts, reviewed your spending, maxed out what you could for retirement, and tied up those loose ends that always seem to multiply in December. You’ve done the work.

Now? Now it’s time to step off the trail for a moment.

The View from Here

You know what experienced hikers do when they reach a good vantage point? They don’t immediately forge ahead to the next mile marker. They stop. They take in the view. They pull out their map and plan the next leg of the journey while their legs recover and their perspective expands.

That’s exactly where we are right now, and that’s what I’m asking you to do this week.

Take time with your family. Put the spreadsheets away. Close the banking apps. You’ve prepared your finances for 2026 – that foundation is solid. What you need now isn’t another optimization strategy or one more financial tweak. What you need is space to dream.

Your Assignment (The Fun Kind)

Between now and the New Year, I want you to do something that might feel unfamiliar: spend time envisioning what 2026 could actually look like. Not just financially – holistically.

What does your family want to experience together?
What’s one thing you’ve been putting off that deserves your attention?
Where do you want to be this time next year – not just in net worth, but in life?
What would make 2026 feel like a year you truly lived, not just survived?

Talk about this with your partner. Include your kids in age-appropriate ways. Dream a little. Maybe dream a lot.

Why This Matters

Here’s something I learned as a former financial advisor and wealth manager and most importantly-a dad: the families who built real wealth weren’t the ones obsessing over every basis point. They were the ones who knew why they were climbing in the first place.

Your money is a tool. It’s there to help you build the life you actually want, not some theoretical perfect financial statement. But you can’t build that life if you haven’t taken time to imagine it.

What’s Next

When we reconvene on January 2nd, we’re going to take everything you’ve envisioned this week and create your 2026 map. Think of it as your trail guide for the year ahead – practical, achievable steps that connect today’s reality with the summit you’re working toward.

But that mapping exercise only works if you’ve done this week’s work. You can’t chart a course to somewhere you’ve never imagined going.

So go. Enjoy your family. Rest. Reflect. Dream.

The climb continues in January, Ascenders – and it’s going to be your best year yet.

What are you envisioning for 2026? Drop a comment below – I’d love to hear where you’re headed.