Budgeting
What do you do when getting money
Pay yourself first
What is net pay and gross pay
Gross Pay is Your total earnings before any deductions And Net Pay is The final amount remaining to take home
What is credit
Buy now -> pay later
how can investor best harness the power of compounding
By Investing early
What are examples of recurring expenses
Subscriptions, Rent, utilities
Two examples of employer contributions
401K and health insurance
What is the best way to improve payment history
Paying everything on time
What are reasons to invest
To minimize the impact on inflation
To build wealth by reinvesting your returns: This refers to compounding
To earn higher average rates of return than a typical savings account
What Is the budgeting % rule
50% towards needs 30% towards wants 20% towards 10%
What are two categories of government spending that are paid for by FICA taxes
Social Security and Medicare
What makes up most of your credit score
Payment history and utilization
What best describes investing
Buying assets, like stocks, with the intention to hold them and grow your wealth over the long term
What does it mean to pay yourself first
prioritizing savings by setting aside money before paying other expense
What are the 4 expense types we spoke on
Fixed, Recurring, Non-Recurring, Whammy
What are 3 examples of installment loans
Auto loan, Student loan, House mortgage
When is the best time to start investing
In your teens and early 20’s
Are they losing purchasing power or gaining due to inflation. Sara gets a 5.3% raise and inflation increases prices by 5.3%
Losing power
What is 0 based budgeting
What is “make sure every dollar is accounted for”
What does APR fall between on credit cards
16% to 30%