Chapter
1
1
You should always make sure you have a…
Budget!
What is your biggest wealth building tool?
Income!
Once you're out of school, have started your career, and have zero debt, your emergency fund should have _________
3-6 months of living expenses
Your greatest tool to building wealth is..
Your Income!
True or False
The key to contentment is gratitude.
True!
What does living paycheck to paycheck mean?
When a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings.
What type of expense would rent be?
Fixed!
Which two habits are the most important for building wealth and becoming a millionaire?
Consistently investing money and patience to give it time to grow
A car is a depreciating asset.
True!
Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a…
Wise consumer
What is The First Foundation?
Save a 500$ emergency fund
What is your first priority on your budget?
Giving!
What is the goal of an emergency fund?
To have cash on hand for unexpected events
True or false
Loans that directly help you advance in life, such as student loans, are acceptable debts.
False!
An example of discretionary spending is
nonessential goods and services
Without any debt, you can be outrageously…
Generous!
What expense is it called when it remains the same from month to month?
Fixed!
The top three careers reported among millionaires were _____________, _____________, and ___________
Accountants; engineers; teachers
Credit card companies charge stores a 2–3% fee for every purchase made with credit cards. This is called a(n)
Merchant fee!
It's your right as the consumer to
expect a product to live up to the quality promised to you before you purchased it
What is financial literacy?
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
What are the four walls?
Food, shelter, transportation, and utilities
Why do stores rarely advertise the full price of big purchases like smartphones?
By showing you only the monthly payment, they make the product seem affordable
When looking over your credit report, it's important to make sure…
no lines of credit have been opened under your name without your knowledge
Americans spend over $2,100 a year on…
Impulse purchases!