5 foundations
which stage of the 5 foundations requires you to get out of debt
2
What’s net worth
where you financially stand / total cost of:
assets - liabilities
What is a consumer?
someone who uses/buys a product
Credit cards have the largest amount of debt in the US
super duper not not false
What is debt
money owed to another person / company
What 2 personal investments are recommended for you to pay for with cash
college (impossible) and car
How long is a medium-term goal?
3-4 years aka a few years
What is personal finance?
financial decisions for an individual or family in order to earn, budget, save, spend, and give money over time.
Avg debt of people in the US is like $50,000+
false
What is living paycheck to paycheck?
not having money left over to save for the upcoming month
Who made the 5 foundations
Dave Ramsey
List 3 types of financial planning
short, medium, and long term
What is interest?
additional cost a lender would charge when lending money
Negative net worth = you in debt
true
What are the 5 groups of the population financially?
What are the steps similar to the 5 foundations called
7 baby steps
What are excess funds
Money left after paying expenses
granting of loan / creation of debt
you need to save $1000 for the baby steps
True
What is a personal financial action plan?
plan to get out of debt and stay out of debt
List the 5 foundations
save 500, get out of debt and stay out, cash 4 car, cash 4 college, build wealth and give
List the 5 guidelines for financial goals
What is % of American adults with a credit card?
83%
% of people living paycheck to paycheck in the US is less than half
What is % of the US that has debt
72%