Monthly operating floor
Ordinary net income minus essential housing, food, transportation, healthcare, insurance and minimum debt.
PRE-FLIGHT · LEVEL 100
Stabilize the financial aircraft.
Before investing harder, make the household capable of absorbing an ordinary surprise without missed bills, new revolving debt or raiding retirement.
INSTRUMENTS
Use numbers that can be verified.
Immediate cash
Cash available today, excluding money owed for taxes, bills or someone else.
Debt pressure
Every balance, rate, minimum, status and whether the rate can change.
Protection gaps
Health coverage, required auto/home coverage and the income or dependents that remain exposed.
DECISION GATES
Work the constraint that controls the outcome.
| Condition | Evidence | Required move |
|---|---|---|
| Cash flow is negative | Ordinary income is below essential costs and minimums. | Stop extra investing/debt acceleration; cut or renegotiate recurring costs and secure income first. |
| High-rate revolving debt exists | Interest cost is likely to overwhelm normal investment returns. | Keep a starter reserve and any employer match, then direct the controlled surplus to the expensive balance. |
| No cash buffer | A routine repair would return to a card. | Build the first month of essentials before expanding risk investments. |
| Dependents or income are exposed | A death, disability or uninsured loss breaks the plan. | Quantify the gap and address required coverage before optional optimization. |
ORDER OF OPERATIONS
Complete the level in sequence.
Make cash flow true
Use two ordinary months or pay cycles. Remove reimbursements, windfalls and optimistic overtime.
Build the first reserve layer
Target one month of essentials first; keep it liquid and separate from checking obligations.
Stop expensive compounding
List debt by rate and status, keep all accounts current and choose one payoff order.
Close catastrophic gaps
Verify actual policy documents and beneficiaries; insurance is for losses the household cannot absorb.