A cash cushion gives you options. It lets you leave a job you’ve outgrown or get through a rough month without carrying a card balance you can’t pay off.
That’s the case Amplifi LLC Chief Executive Officer Braiden Shaw makes for where your money should go first in 2026.
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“If you lose your job or want to switch your job, you don’t want to be constrained because you have $10 in the bank account,” he said in a TikTok video (1). “Buy yourself a buffer, put it in there, you’ll thank me later.”
His five-step order, from basic to advanced, is a high-yield savings account, a 401(k) up to the employer match, an individual retirement account (IRA), a taxable brokerage account and finally investing in yourself.
The cash buffer, and where it grows
Step one is your emergency fund. It’s there, so one setback doesn’t throw you off course.
Where you keep that money matters because it affects how much it earns. A high-yield savings account works like a traditional savings account, but it usually pays a much higher interest rate. It’s also federally insured up to $250,000 and easy to access, making it a good place for cash you want to keep close but not spend.
That matters because the national average savings rate was just 0.38% as of June 15, according to the Federal Deposit Insurance Corporation (FDIC) (2), while some of the top high-yield accounts were paying as much as 5% as of July 2 (3). You’re still keeping the same federally insured cash, but earning more while it sits there.
The match, and the account you control
Step two is a 401(k), but only up to your employer’s match. A match is money your employer puts in alongside yours, usually as a set share of your pay, and it only happens when you contribute.
That makes the match feel like an instant return on your investment, which is why Shaw says it’s too valuable to skip.
He stops there if there’s no employer match.
“If your employer does not have a match, you are skipping your 401(k),” he said (1), calling it “generally speaking a poorer performing asset than an IRA” because an IRA gives you more control over what you invest in.
A few other points matter. A 401(k) is the account that holds your investments, so the same mutual fund or ETF performs the same whether it’s inside a 401(k) or an IRA. The contribution limits are also different. In 2026, you can contribute up to $24,500 to a 401(k) and up to $7,500 to an IRA, according to the (4)Internal Revenue Service (IRS) (4). That means a 401(k) allows you to save more, even if an IRA offers greater investment flexibility. Many employers also offer a Roth 401(k), which uses the same tax treatment Shaw recommends in the next step.
Roth, ETFs and the brokerage account
Step three is opening an IRA, and Shaw says he’d lean toward a Roth IRA for most people.
The biggest difference is when you pay taxes. With a Roth, you pay taxes upfront, and unqualified withdrawals in retirement are tax-free. With a traditional IRA, you may receive a tax break now, but you’ll pay taxes when you withdraw the money later. Which option makes more sense depends largely on your income, Shaw said.
He’d invest those contributions in broad, low-cost ETFs. ETFs hold a diversified mix of stocks in one place, helping keep costs low. Shaw mentioned VOO, VTI, QQQM and SCHD, all low-cost index ETFs (1). The $7,500 he references is the 2026 IRA contribution limit.
Step four is a taxable brokerage account for money left over after you’ve maxed out your tax-advantaged retirement accounts. It has no annual contribution limit and no retirement-account restrictions, but you’ll owe taxes on dividends and any capital gains when you sell investments. Shaw views it as a flexible account that can help fund future goals like buying a home, replacing a car or investing in real estate.
Betting on yourself — and Shaw’s stake in the list
Step five is the one Shaw says gets the most pushback: investing in yourself.
“Every billionaire and millionaire will give the same advice,” he said when asked what they’d invest in.
He’s talking about improving your skills and earning potential through courses, certifications or learning new skills that can increase your income over time. It’s the hardest investment to measure, but Shaw argues it can produce the biggest payoff because it affects every other step in the plan.
Investing in yourself has also become a business. Online learning platforms, paid financial education communities, and coaching programs have all grown in popularity. Amplifi (5), the company Shaw runs, is one of those businesses. It offers a subscription community and a higher-tier service that provides access to private market investment opportunities.
He also publishes a list of recommended high-yield savings accounts for his followers (6).
What this means for your money
Shaw’s order closely mirrors advice many financial planners already give: build an emergency fund first, capture any employer match next, then contribute to tax-advantaged retirement accounts before putting additional money into a taxable brokerage account.
A couple of details can help you decide whether the strategy fits your situation. First, find out whether your employer offers a 401(k) match before deciding how much to contribute. That one benefit can significantly change your priorities. Then compare the annual contribution limits, $24,500 for a 401(k) and $7,500 for an IRA in 2026, with how much you’re actually saving each year. That can help you decide whether stopping at the employer match makes sense.
The emergency fund is the easiest place to begin. Keep cash somewhere you can access it easily, earn a competitive interest rate and have it ready before you need it.
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Article Sources
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TikTok (1); Federal Deposit Insurance Corporation (2); Fortune (3); Internal Revenue Service (4); Amplifi Braidenshaw (5), (6)
