5 Foundations
Who developed the five foundations?
Dave Ramsay
Bad history with Credit typically means a…
Higher interest rate.
Planning and setting goals for your money will help keep you from…
running Out of money. too quickly
How long does a short term financial goal take?
under 2 years.
Who is the richest person in the world currently
Elon Musk
In order to make the most progress, its important to…
follow The five foundations in order.
What type of debt is the largest in the US.
Mortages.
Net worth is:
The amount of money you are worth after paying all of your debts.
what are the three types of financial goals?
Short, medium, and long term goals.
Not having debt can lead to…
Financial freedom.
The five foundations is a:
A personal finance action plan geared towards high school students.
Without any debt, you should…
Save, Invest, and be generous.
A plan of action that allows a person to meet their immediate needs and long term goals.
A financial goal should take no longer than…
5 years.
The real problem for most people is…
Making smart choices financially.
Why is it important to set aside money for emergencies?
In case of unexpected expenses.
In order to be debt, you must follow these two principal:
Always have a budget And Live on less than you make.
To help maintain your goals, they should be…
Specific, measurable, time-sensitive, yours, and written.
Once you’ve completed your financial goals, it is important to..
Be generous with your wealth.
Personal finance is…
80% behavior and 20% head knowledge
Name the five foundations.
save $500 for an emergency fund, get out and stay out of debt, pay cash for your cars, pay cash for college, and build wealth and be outrageously generous.
Personal Finance is…
All the financial decisions an individual or family makes in order to earn, budget, save, spend, and give money over time.
What four things do you need to know for your financial plan?
Where you stand financially, how much income you have to work with, what goals you want to set, and how you’ll reach those goals.
Why is it important to be generous?
Generosity builds connections and makes completing your goals easier.
What is an index fund?
an investment that is automatically divided across many companies.