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Question 11

When planning multiple milestones (car, house, college), prioritizing limited savings matters. A common framework: secure short-term emergency savings first, then prioritize high-interest debt payoff, then save for near-term goals (down payment), and finally longer-term investing. Timing and risk tolerance can shift order. Small practical steps — automating transfers and keeping goals visible — help make progress. This question checks knowledge of sensible sequencing when money is limited and choices must be prioritized.

What’s a common first priority before saving for large milestones?

Did You Also Know...

By Wise Wallet

Market crashes happen periodically and recoveries can take years, which is why emergency funds and long time horizons matter.