Serial or Parallel?

As I was writing the last post, I started thinking about the Baby Steps, and whether they are supposed to be done sequentially, or whether some can, and probably should be done simultaneously.

For instance, Baby Steps 1, 2, and 3 are almost certainly sequential because they represent, to some extent, a priority.  You need a baby emergency fund before you start your debt snowball.  And, to some extent, you probably want each and every available dollar to go towards the debt snowball before you start saving for your fully funded emergency fund.  If this was not the case, then Baby Steps 1 & 3 could almost be combined.

At the same time, Baby Steps 4, 5, and 6 can probably be done simultaneously.  Obviously Baby Step 4 is a flip of a switch – you begin the process of setting aside (hopefully automatically) 15% of your income into pre-tax retirement accounts.  Once that’s started, it’s not going to end until retirement.  I haven’t given much thought to Baby Step 5 as I don’t have children, but I’m sure it can and probably does happen at the same time you’re paying your home off early in Baby Step 6.

Dave – if you’re out there, please help me to clear this up!