International Baccalaureate (IB) Practice Exam 2025 – Complete Study Resource

Question: 1 / 400

"Pay yourself first" is best described as?

Spending your income before saving

Assigning a portion of your income to saving and investing

The concept of "paying yourself first" revolves around the financial principle of prioritizing savings and investments before addressing other expenses. This approach emphasizes the importance of setting aside a predetermined amount of money as soon as income is received, rather than waiting until all expenses are covered. By allocating a portion of income directly to savings and investments, individuals can build wealth over time, ensure financial security, and work towards their long-term financial goals.

This strategy can lead to more disciplined financial habits and can help individuals avoid the common trap of spending their entire income on discretionary items before considering their savings. By making savings a priority and treating it like a non-negotiable expense, individuals create a more sustainable financial future.

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Taking out loans for expenses

Not saving at all

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