Let’s face it – the financial world is big, it’s confusing, and there are many different opinions on how to handle your money.  It’s hard to tease out which people are trying to help, and which are trying to sell you something.

princess bride gif

Rule #1 of CaseyRock.com: Princess Bride always applies.

Luckily, there’s a simple resource that can help you with the basics.

Reddit users /u/atlasvoid and /u/beached89 put together this “Personal Income Spending Flowchart” that takes you from zero to financial-independence hero.  It’s a simple, step-by-step process: while it might not get you rich in the short term, following the chart will greatly increase your financial health, and put you in a better position in the future.

I disagree with a few of the points on the flowchart, which I will note below, but I guarantee that you’ll be better off following this process than not.

The Financial Independence Flowchart

Financial Independence Flowchart

You may be asking yourself, “What the hell?  You said this was simple!“.  Worry not – I’ll go step-by-step and explain the big takeaways from this chart.

Step 0: Create a Budget