Definitions
This amount of money is paid to an ex-spouse in re-occurring intervals, both determined by a court of law.
What is "alimony?"
Items such as a mortgage, utilities, car payments, and memberships are categorized as what type of expenses?
What are "fixed expenses?"
Ramsey recommends investing into these as long-term investments due to their 12% ROI as indicated by the S&P 500.
What are "growth-stock mutual funds?"
Financial freedom means having control of these two things.
What are "money and time?"
Sometimes, you have to pay more, or in this case, deposit more to make more, with this savings account's higher interest rate.
What is a "money market account?"
This organization protects consumers from shady marketing campaigns and educates them on their rights as potential buyers.
Who is the "Federal Trade Commission?"
Personal finance is largely this percent behavior.
What is "80%?"
A new car loses this percent of its value in the first 4 years.
What is "60%"
This is a contribution retirement account offered by many employers.
What is a "401(k)?"
You pay taxes on the money that goes into this type of retirement account so you don't have to pay them on future withdrawals.
What is a "Roth IRA?"
This denotes the systematic risk associated with a security or portfolio.
What is "beta?"
Items such as groceries, gifts, and entertainment are categorized as...?
What are "variable expenses?"
According to Ramsey in Chapter 3, the average car payment is almost $500. Taking this money and investing it into mutual funds averaging 12% over how many years will yield almost $6 million.
What is "40 years?"
What is the "Housing Market Crash?"
These investments into well-established companies with an abundance of resources tend to offer stable returns with little risk over time.
What are "large cap funds?"
This term indicates the percentage change from the initial amount of an investment to the current value of that investment.
What is "rate of return?"
Before you apply the Debt Snowball, how much money should you set aside in an emergency savings?
What is "$1,000?"
According to the majority of this group referenced in the book in Chapter 3, the best way to build and maintain wealth is to become and stay debt-free.
What is "The Forbes 400?"
Setting cash aside for designated expenditures instead of using credit or debit helps many people be more accountable with their money with this system.
What is the "envelope system?"
Also known as a "second mortgage," this is also the opposite of smart investing, and investing, in general.
What is a "home equity loan?"
This financial move is intended to reduce risk by taking an offsetting position to that security, for example, buying flood insurance for a property near sea-level.
What is "hedging?"
Many people do not have money leftover at the end of the month. What percentage of the U.S. population lives paycheck to paycheck?
What is "70%?"
What is "spiritual?"
What demographic is the number one target of credit card companies?
Who are "teens?"
Before you make a purchase, ask yourself if you really need it. For every dollar that you spend today, it is like taking how many dollars from your future self?
What is "$5?"