Most money questions are really questions about order. Should you pay off the credit card or save? Overpay the mortgage or invest? Pay more into a pension or an ISA? There's no single right answer for everyone, but there is a general order that suits most people's situation. This guide sets it out, with the calculator for each step. It's general information, not personal advice.
1. A small emergency fund
Before anything else, it helps to have some cash set aside for surprises, such as a boiler repair or a gap between jobs. Without it, an unexpected bill tends to go on a credit card, undoing other progress. Many people aim for one month of essential spending to start with, building up to three to six months over time. The savings goal calculator shows how long that will take at a given monthly amount.
2. Expensive debt
Credit cards, overdrafts and high-interest loans usually cost far more than savings earn. Paying them off is a guaranteed return equal to the interest rate. If you have several debts, the debt avalanche and debt snowball calculators compare the two most common repayment orders, and a 0% balance transfer can cut the interest while you clear the balance.
3. The full employer pension match
If your employer will increase its pension contribution when you increase yours, taking the full match is one of the best returns available. Contributions also get tax relief, and salary sacrifice saves National Insurance too. The salary sacrifice calculator shows what each extra pound costs in take-home pay.
4. Longer-term saving and investing
With the basics in place, the next choice is between paying more into a pension, saving into an ISA, and overpaying a mortgage. Pensions give tax relief but lock the money away until at least 57 from 2028. ISAs are more flexible, with £20,000 a year of tax-free saving. Mortgage overpayments give a guaranteed return equal to your mortgage rate. The invest or overpay calculator compares the last two directly, and the ISA calculator shows how tax-free growth adds up.
5. Planning further ahead
Once you're saving regularly, longer-range tools become useful. The FIRE calculator and Coast FIRE calculator show when your savings might support you, and the drawdown simulator tests how long a pension pot lasts against real market history.
When the order changes
This order is a starting point. Someone with secure income and a large employer pension might prioritise differently from someone self-employed. If you're close to a tax threshold, like £60,000 for Child Benefit or £100,000 for the Personal Allowance, pension contributions may jump up the list. And if you're unsure, free guidance from MoneyHelper, or a regulated adviser, can help you apply it to your own situation.