Who should be at the top of your list of expenses?

• A. You
• B. Car payment
• C. Entertainment
• D. Rent

Answer: (A)

The idea being tested is paying yourself first in a budget. You should be at the top because setting aside money for savings and retirement before spending on other items protects your future and builds financial security. When a portion of every paycheck goes straight into savings automatically, you create a habit that grows over time through compounding and gives you a cushion for emergencies or big goals. This approach doesn’t mean you ignore necessary expenses like housing or transportation; it means you treat savings as a non-negotiable priority, with the rest of your budget allocated to those essentials and any discretionary spending afterward. For example, automatically setting aside a fixed amount each month helps you accumulate funds for emergencies and retirement, making it much easier to handle when surprises arise and to reach longer-term goals.