5 Foundations
This foundation is putting $500 in emergency funds
What is the First Foundation
This is a map to get from where you are to where you want to be with your money
What is a financial plan?
This debt is the largest in the US
What are mortgages
With this you can save, invest, and be outrageously generous
What is money
Assets - Liabilities
What is Net Worth
This foundation is to be outrageously generous
What is the Fifth Foundation?
This goal can be completed in under 2 years
What is a short-term goal
This debt comes from using money that isn’t yours.
What is credit card debt
Not having this can led to financial freedom
What is debt?
When you assets outweigh your liabilities
What is positive net worth
This foundation is to pay for college in cash
What is the Fourth Foundation?
This goal can be completed in 5-10 years
What is a long-term goal
This debt comes from gaining an education
What are student loans
To be this you need to always have a budget, and live on less than you make
What is financial freedom
When your liabilities outweigh your assets
What is negative net worth
This foundation is to get out of debt and stay out it
What is the second foundation?
This goal can be completed between 2 to 5 years
What is a medium-term goal?
What are car loans
This typically results in a high interest rate
What is bad credit
This is the amount of money you receive before deductions
What is gross income
This foundation can be prepared for in high school through smart saving and smart spending
What is the third foundation?
These are the 5 recommendations to maintain your goals
What is specific, measurable, time-sensitive, yours, and written
77%
What is the percentage of Americans in debt
This is 80% behavior and 20% head knowledge
What is personal finance
This is living using the exact amount you make or by living with no savings
What is living paycheck to paycheck