#savings

Compound interest is earning returns on your returns. It feels like magic because humans think in straight lines and compounding curves upward. The one variable that decides everything is time, and it's the one you can't buy back.

An emergency fund is cash you set aside for job loss, medical bills, and broken things, so a bad month does not become a debt spiral. Here is how big it should be, where to keep it, and why it comes before investing.