Free Yourself Daily Hub

By this point in the Simplified Roadmap to Financial Freedom, you’ve hit some major milestones:

• 15% going into your 401(k)
• Roth IRA maxed out (or as close as you can get)
• 6-month emergency fund built

We’ve already talked about the benefits of a taxable brokerage account — and trust me, it’s a powerful tool.
But Step 5 is for people like me who want financial freedom and genuine peace of mind.

Why Step 5 Exists

Many financial advisors would tell you to stop here and invest more aggressively.
Dave Ramsey says it all the time:

“If you have extra money, put it into a growth stock mutual fund.”

It’s solid advice — but here’s the truth:
I value stability.
I’ll accept a slightly smaller return today if it means I’m not losing sleep at night.

So here’s my recommendation:

Increase your emergency fund from 6 months to a full year of expenses.

Not wants.
Not vacations.
Not holidays or home projects.

Just the essential expenses that keep life going — mortgage or rent, utilities, food, insurance, and transportation.

Why a year?
Because if disaster hits hard, you shouldn’t be lying awake thinking,
“How am I going to pay my bills?”
A year gives you a cushion to regroup, breathe, and rebuild your next move. Disaster creates reactive responses and in desperation, people turn to desperate measures. Do not let yourself get to desperation.

And here’s something I realized:

Having one year of expenses saved actually increases my risk tolerance when investing.

It lets me be more aggressive in my brokerage account because I know, without question, that my real-life expenses are covered for an entire year.
That security removes fear — and fear is what usually holds people back from strong long-term investing.

How I Personally Handle My Setup

My money market account is linked to my brokerage (like most are), so if an opportunity pops up, I can quickly move funds and refill my emergency bucket afterward. It’s flexible and it matches my personality.

I’ve been told I’m “saving myself to the poor house.”
But my future self will thank me — especially if it means early retirement and a calmer brain.

And for transparency: most of our spending outside of bills goes into groceries.
We choose high-quality foods, focus on clean ingredients, and prioritize our protein goals. Everyone has something they value — that’s ours.

A Quick Side Note on Where I Am Right Now

I’m currently saving for some home remodeling projects. Instead of taking out a loan, I want to pay cash.
So next year, my emergency fund will already be fully stocked and I’ll still be putting 15% into my 401(k)…
…but I may redirect money toward the remodel instead of my Roth for the next year so the project is paid for outright. Investing money into making our home better is just adding to the value of our home, therefore increasing equity.

Then in 2027, once the remodel is done, I’ll go back to being more aggressive through my brokerage and maxing out my Roth.

This is the important part:

All accounts work together.

Some years the priority is retirement.
Some years it’s stability.
Some years it’s paying cash for life upgrades.
It all serves the bigger picture.

Now the Real Question…

Once you’re here —
✔️ 1 year of expenses saved
✔️ 15% into your 401(k)
✔️ Roth IRA funded (or funded as much as possible)
✔️ Taxable brokerage started

…what do you do if you’re suddenly handed $15,000?

Do you:

• Follow Dave Ramsey and invest in a growth stock mutual fund?
• Pick a total market ETF for broad diversification?
• Choose the classic S&P 500 index fund?
• Build stability with an 80/20 stock–bond split?
• Or buy dividend-paying stocks to start creating steady income?

There are endless possibilities — but here’s the reminder:

👉 You are already far ahead because you are already investing a meaningful portion of your income.
Everything after this is building on a solid, disciplined foundation.

And it’s okay if your numbers aren’t perfect.
If you can only get 10% into your 401(k) — commit to not dropping below it.
If you can only put $5k into your Roth by year-end — that’s progress worth celebrating.
If your “one-year emergency fund” only covers your mortgage — that still gives you a full year to regroup.

The whole point is simple:

Pay your future self first.
Your brokerage account is for your present self — for opportunities, flexibility, and long-term wealth-building.

In a later post, we’ll break down the exact pros and cons of each $15k option so you can choose confidently.

One More Important Note

This step isn’t for everyone. If you’re renting, a full year of expenses may not be necessary — in that case, keeping 6 months is usually more than enough flexibility and protection. But if you own your home, this step becomes far more valuable. When you own, you’re building equity and contributing to one of your biggest long-term assets.

Losing your home would mean losing a major piece of your financial future — something you’ve worked hard to build. Increasing your emergency fund to a full year helps protect that asset and ensures your mortgage is always covered, no matter what life throws at you.

One thing we will look at also is HELOC’s and paying down your mortgage.