Should you pay off all debt before you start saving money?

The correct choice emphasizes the importance of balancing both saving and debt repayment simultaneously. This approach acknowledges that while it is crucial to reduce debt to achieve long-term financial stability, having a savings strategy in place serves as a financial safety net.

Starting a savings plan alongside debt repayment can provide security in case of unexpected expenses or emergencies, which might otherwise lead to accumulating more debt if one is unprepared. By setting aside a small amount for savings, individuals can avoid high-stress situations that can arise from unforeseen financial challenges while still making progress on debt reduction.

The rationale behind this balanced approach aligns with the principles of financial wellness advocated by experts in personal finance, which stress not only the need to clear debts but also the need for a buffer that savings can provide.