Big goals can feel overwhelming—but they don’t have to. Strong financial planning starts with simple steps you can take today.
“Financial planning is not a one-time task but a lifetime journey,” says Fidelity Vice President and Viewpoints editor Ann Dowd, CFP®. “Life’s surprises may leave you behind or push you forward. But knowing where you stand and how to move forward at any moment can give you the confidence you need to achieve your goals.”
Our financial planning checklist shows you what to consider first, and how to build toward the future.
How to start financial planning
The best place to begin is with your financial basics. As those pieces come together, you can build momentum, broaden your strategy, and eventually work toward bigger goals—like helping family or supporting the causes that matter most to you.
1. Know your numbers
Determine how much money you have coming in and going out each month—including money going toward debt repayments.
Why it matters: Understanding your full financial picture can help you prioritize your next steps.
2. Create a budget
If you're spending more than you're bringing in, work to spend less than you earn.
We suggest the 60/30/10+15 budgeting guideline. Fidelity's Plan Your Pay guideline is a target you can work toward gradually to strengthen your financial foundation. Here’s how it works.
Aim to save 15% of pre-tax income for retirement (including any match from your employer). After you’ve saved for retirement, consider:
- 60% or less of your take-home pay for essential expenses,
- 30% for "nice to have" or nonessentials,
- 10% for near-term goals and emergency savings.
Everyone's situation is different, and these percentages are not goals or hard rules. Simply set up your budget and start identifying ways you can spend less and save more.
Tip: You can track your spending and saving with Fidelity's digital tools.
Why it matters: Positive cash flow is the foundation for every other step.
3. Protect what you have with insurance
Make sure you have basic insurance coverage in place to protect what you have, including:
- Health insurance
- Life insurance
- Disability insurance
- Homeowners or renters insurance
- Auto insurance
Read Fidelity Viewpoints: Are you underinsured?
Why it matters: Some events have a small likelihood of happening. But if they do occur, the results can be financially devastating. That’s why safeguarding against major risks with insurance takes a high priority.
4. Use tax-advantaged accounts to save for health care expenses
Health care expenses may be unavoidable but you can soften the blow by saving for them on a pre-tax basis with a health savings account (HSA) or health flexible spending account (FSA).
Whether you can enroll in an FSA depends on your employer; eligibility to contribute to an HSA is determined by your health insurance.
HSAs and health FSAs are generally offered by employers as part of a benefits package, though you may be able to open an HSA on your own if you are enrolled in an HSA-eligible health plan through work, your spouse's employer, private insurance, or the insurance marketplace.
HSAs offer triple-tax advantages—contributions, growth, and distributions are tax-free at the federal level.1
The money in your HSA will always belong to you until it’s spent and can even be invested for the future.
Read Fidelity Viewpoints: 3 healthy habits for health savings accounts
Health FSAs allow you to save money pre-tax through your employer for qualified medical expenses but the money must typically be spent within the same plan year—or else you could lose it.
There are 2 types of health FSAs to consider, both of which allow you to set aside money before taxes. A full purpose health care FSA can be used for qualified medical expenses, such as over-the-counter medications, and a limited purpose FSA can be used for qualified vision, dental, and preventive care expenses in conjunction with an HSA.
Read Fidelity Smart Money: HSA vs. FSA: Which is right for you?
Why it matters: Using pre-tax dollars for health care expenses can help free up cash for other goals and it helps make sure you have enough money to cover health care costs.
5. Start building an emergency fund
Begin by aiming to save $1,000 or one month's worth of essential expenses (food, housing, health care, and other must-haves).
Read Fidelity Viewpoints: How much to save for emergencies
Why it matters: A small cushion helps you avoid new debt when surprises happen.
6. Get your workplace match (if applicable)
Enroll in your retirement plan and contribute at least enough to capture the full employer match.
Why it matters: It’s like free money—if you don’t contribute enough to capture the match, you may be leaving money on the table.
7. Pay down high-rate credit card debt
It can make sense to pay down high-interest debt like credit cards as fast as possible. Credit cards generally charge interest at rates between 14% and 25% or more.
Read Fidelity Viewpoints: How to balance debt, saving, and investing
Why it matters: Paying off high-interest debt can help improve cash flow and may be a smart move to make before putting extra dollars toward investing.
8. Finish building your emergency savings
Fidelity suggests saving enough in an emergency fund to cover 3 to 6 months of essential expenses in a safe, accessible place like a money market fund or interest-bearing savings account. Consider keeping at least $1,000 readily available.
Why it matters: A robust emergency savings cushion can help protect you from setbacks (and help avoid dipping into retirement accounts, which could cost money in taxes and penalties.)
9. Saving for nonretirement goals?
Once you’ve established a strong financial foundation, you may want to put some savings toward nonretirement goals, such as buying a home, helping fund a child’s education, or preparing for another significant purchase.
Why it matters: Financial plans serve many purposes beyond retirement. Saving for milestones like a home or education is important—but covering your core financial bases first helps keep your overall plan on track.
10. Protect your loved ones with estate planning
Consider putting basic estate planning in place:
- Will
- Advanced medical directive
- Durable power of attorney
- Beneficiary designations
Read Fidelity Viewpoints: Do you need an estate plan?
Why it matters: Some basic estate planning can help ensure your family’s security if something happens to you.
11. Consider paying down any debt with an interest rate above 6%
If the interest rate on your debt is 6% or greater, it’s generally a good idea to pay down debt before investing additional dollars toward retirement.
Read Fidelity Viewpoints: Should you pay down debt or invest?
Why it matters: Eliminating costly debt improves cash flow and beats most expected investment returns.
12. Aim to max out contributions to your HSA if you have one
Maximize contributions to your HSA and keep enough cash available for annual qualified medical expenses.
Once you’ve set aside enough for this year’s qualified medical expenses, consider investing any remaining balance in your HSA for long-term growth potential. Read Fidelity Viewpoints: How much cash should you keep in your HSA?
Why it matters: HSAs offer unique tax advantages and are one of the most tax-efficient accounts available.
13. Consider paying qualified medical expenses out of pocket if you have an HSA
If you’re able to, pay qualified medical expenses out of pocket, allowing your invested HSA balance to potentially grow for the future. You can save receipts and reimburse yourself with HSA funds later—even years down the road. If you have a Fidelity HSA or an employer-sponsored health benefits plan administered by Fidelity, you can store receipts in the Fidelity Health® app.
At age 65 and beyond, you can use HSA funds on anything, not just qualified medical expenses, avoid the 20% penalty, and simply pay ordinary income taxes on the withdrawal.
Once enrolled in Medicare, you can’t contribute to an HSA—but you can still spend tax-free on qualified medical expenses.
Read Fidelity Viewpoints: 5 ways HSAs can help with your retirement
Why it matters: A 65-year-old individual who retired in 2025 may need $172,500 in after-tax savings to cover health care expenses in retirement, on average, according to the 2025 Fidelity Retiree Health Care Cost Estimate.2
14. Aim to max out retirement contributions
Once you’re on track with emergency savings, debt management, and health care savings, consider maximizing contributions to tax-advantaged retirement accounts.
How much should you consider saving? There are a couple of ways to gauge whether you’re on track.
Fidelity’s retirement planning tool can help you understand your probability of success in retirement. It can also suggest ways to improve your outlook, for instance by increasing the amount you save or making changes to your investments.
For a general estimate, consider using Fidelity’s simple guideline: Aim to save about 15% of your pre-tax income for retirement, including any employer match.
Workplace savings plan like a 401(k) or 403(b)
If you’re seeking to maximize your retirement contributions, you can invest up to $24,500 in workplace plans like 401(k)s or 403(b)s in 2026.
- Those age 50 or older can contribute an additional $8,000 in 2026. This means if you're age 50 or older you'll be able to contribute up to $32,500.
- If you're between ages 60 and 63 and your plan allows, you can contribute up to $11,250 as a catch-up contribution in lieu of the standard $8,000. So if you're between 60 and 63 and your plan allows, you'll be able to contribute up to $35,750 in 2026.
Read Fidelity Viewpoints: 401(k) contribution limits for 2025 and 2026
IRAs
The maximum IRA contribution in 2026 is $7,500. People over age 50 can add an extra $1,100 in catch-up contributions.
Be sure to choose investments that align with your goals once the money is in your account.
Read Fidelity Viewpoints: IRA contribution limits for 2025 and 2026
Why it matters: Saving consistently for retirement helps harness tax benefits and long-term growth potential.
15. Investigate tax-saving accounts and strategies beyond the 401(k), IRA, and HSA
Once you've maxed out your savings through tax-advantaged health care and retirement accounts, you may be able to find further ways to save on taxes and even potentially seek more tax-deferred growth in options like:
Why it matters: These advanced strategies can help reduce taxes and optimize wealth once core savings goals are met.
16. Refine your estate plan
Specialized estate planning guidance can help if you'd like to establish trusts or explore tax strategies to help ensure that your estate passes as tax-efficiently as possible to your heirs.
Why it matters: A little planning now can help preserve wealth and your legacy for loved ones when you're gone.
Progress over perfection
Financial planning never really ends. Progress doesn’t come from doing everything—it comes from doing the right things at the right time. Wherever you are today, this checklist can help you take the next step with confidence.