What does "pay yourself first" mean?

The concept of "pay yourself first" emphasizes the importance of prioritizing personal savings and investments before addressing expenses and bills. By putting money in savings before other financial obligations, individuals ensure that they are actively building their wealth and securing their financial future. This approach encourages a consistent commitment to saving, which can help create a financial safety net and enable individuals to achieve long-term financial goals.

In contrast, the other options do not capture the essence of this philosophy. Investing money before paying bills might overlook essential living expenses. Spending on needs before wants relates more to budgeting rather than systematically prioritizing savings. Earning extra income on the side can be beneficial, but it does not reflect the fundamental principle of setting aside funds for personal savings from the very beginning. Therefore, the correct understanding of "paying yourself first" is about prioritizing savings above all else, making option B the best choice.