I agree with this advice for the most part. Nevertheless, I would insert insurance (health, disability, auto, etc.) between emergency savings and long term investing. Choose policies that are appropriate to your life needs, but definitely do it. It's harder to do when you're living hand to mouth (e.g. running a start-up), but it's a means of protecting your life, assets and investments. I've had people close to me who had their net worth wiped out by an accident. My $0.02.