The debt avalanche method prioritizes paying off the highest-interest debt first to minimize interest costs over time.
A personal budget helps individuals manage their income and expenses effectively to achieve financial stability and savings goals.
An emergency fund provides financial security by covering unexpected expenses, such as medical bills or job loss, without relying on debt.
Fixed expenses, such as rent or mortgage payments, remain consistent each month, making them predictable in budgeting.
The 50/30/20 budget rule allocates 50% of income to needs, 30% to wants, and 20% to savings and debt repayment.
Regularly reviewing a budget ensures financial goals remain on track and adjustments can be made for unexpected changes in income or expenses.
