Which of the following is considered a foundation financial goal?

Building an emergency fund is considered a foundational financial goal because it establishes a financial safety net that protects individuals from unexpected expenses or financial crises. An emergency fund typically aims to cover three to six months of living expenses, allowing individuals to handle emergencies without incurring debt or liquidating investments at a loss. This fundamental step is crucial for achieving broader financial stability and peace of mind.

In contrast, investing in stocks and bonds is often viewed as a strategy for growing wealth rather than a foundational goal, as it involves more risk and is dependent on market conditions. Funding retirement accounts is important for long-term financial security but often comes after establishing an emergency fund and may not address immediate financial stability. Luxury travel expenses, while a personal aspiration, do not contribute to foundational financial health and can potentially detract from achieving more critical financial priorities. Hence, building an emergency fund serves as the cornerstone upon which other financial goals can be securely established.