Needs/Wants + 50/30/20
What are some common Wants?
Eating out, Subscriptions, etc.
how many months worth of expenses should you have saved up?
at least 3 months
Which is riskier, Investing or Day Trading?
Day Trading
how much of your credit card bill should you pay to avoid debt?
pay in full
Emotions goes ___ Intelligence goes ____
up, down
What are some Common Needs?
Food, Housing (Rent), Phone/Utility Bills, etc.
What does your credit score say about you?
how trustworthy you are financially
What are some common investments?
S&P 500, Homes
What's the best way to track what you spend and where to avoid overspending?
a budget
When should you create and start putting money into a retirement account?
As soon as possible, once you have a steady income.
What does 50/30/20 stand for?
50% = Needs
30% = Wants
20% = Savings
What should your emergency fund cover
everything in your monthly budget
What is Simple Interest?
interest calculated without interest on the amount
What affects the interest amount you pay on a house loan?
your credit score
Should you have a joint account with your spouse?
Yes and No, have a joint account for mutual spendings and separate accounts for personal spending/ savings.
What is Gross and Net Income?
Gross = Salary before tax is removed
Net = Take home pay (after tax is removed)
How do you keep your credit score up?
pay in full and on time
What is Compounding Interest?
interest you earn on both your original money (the principal) and on the interest that has already accumulated over time
What is a down payment?
The amount you pay upfront without a loan
What is a 401(K)?
A special retirement savings account that is provided by your employer, letting you put money away directly from your paycheck.