Interest
This is the percentage of principal charged by the lender for the use of its money (such as credit cards)
Interest Rate
Saving this amount is your first priority
$500
Don't get caught in this type of experience, when you make a purchase and later wish you hadn't
Buyer's Remorse
If a person's income is completely devoted to their expenses, they are doing what?
Living Paycheck to Paycheck
NATIONAL AVERAGE - CLOSTEST WITHOUT GOING OVER: In 2000, you could drive almost anywhere with ease because gas only cost $1.51 a gallon. Today, what would you be paying per gallon?
$3.72 Per Gallon!
This is interest that is paid on previously earned interest
Compound Interest
When you're driving down the road and blow out your tire, you'll be glad that you have this!
An Emergency Fund
This is the initial amount of money you deposit or invest
Principal
This is an expense for things you don't need
Discretionary Expense
NATIONAL AVERAGE - CLOSTEST WITHOUT GOING OVER: Back in my day of 2000, a gallon of milk only cost $2.78. Today, that gallon of milk in your cereal would cost how much?
$4.10 A Gallon!
If you put $1000 into an account as the principal, and you get a return rate of 10%, at the end of the year you will have $1100.Because of Compound Interest, you would have this amount after 2 years
$1210
You will want to plan to save for these types of purchases when you don't have the cash to buy them now
Large Purchases
This is the average rate of growth for an investment
Compound Growth
Everything you own minus everything you owe
Net Worth
NATIONAL AVERAGE - CLOSTEST WITHOUT GOING OVER: In 2000, I could live in a pretty nice apartment with rent only costing $602 a month. Nowadays, that same apartment would cost what per month?
$1664 A Month!
When calculating compound interest, you need to know this percentage number, which is the measure of an investment's profit or loss
Rate of Return
This is the Third Foundation
Pay cash for your car
Knowing this will help you know your earning potential of money by understanding that money's worth today is more than what it will be in the future
Time Value of Money
This is a large lump sum expense that occurs at various times throughout the year
Intermittent Expense
NATIONAL AVERAGE - CLOSTEST WITHOUT GOING OVER: In 2000, you could be driving a fancy car for the low low price of $20,000. Today, that same car would cost you what?
$50,000!
Accrued Interest
One thing to take into consideration when making a budget, especially when planning for the future, is this term meaning increases in prices over time
Inflation
These are the two elements needed to build wealth through compound growth
Money Invested & Time
A record that summarizes all of the income and spending over a certain time period
Cash-Flow Statement
NATIONAL AVERAGE - CLOSTEST WITHOUT GOING OVER: In 2000, you could buy your family a nice home for around $146,000. For that same home, what would you be paying today?
$418,000!