The 5 Foundations
A flat tire is an example of an emergency fund expense. How much should you have in your emergency fund as a single Adult?
500 Big Ones!
This plan is for anyone earning any income and anyone who belongs to any tax bracket
A budget
The hardest part of saving is also the most important part of saving. Youre not born with it, you build it.
Self Discipline
Money
25 years old
The deadline for your personal investing assignment
The 3rd Foundation
Pay cash for your car.
The 1st component of a budget is
Income
The amount of money you should have in an emergency fund when you have a family.
$1000.00
What percentage of your income should go toward retirement.
15%
This type of investment is great for short term savings like holidays or vacations
Certificate of Deposit
Most people believe you must go into to debt for this major life expense. Dave says...
Pay Cash for college.
The second component of a budget is.
Giving!
A fully funded emergency fund.
3-6 months of income
The term for investments that make you money when the investment increases in value.
ROI Return on Investment
This type of investment is known to be sexy and super risky!
Single stocks
the 2nd foundation is to get out and stay out of debt. What is the financial plan for getting out of debt called?
The debt snowball
Groceries and gas fall under which time of expense
Variable expense.
3 basic reasons to save
Emerencies
Large Purchases
Building Wealth
Which investing principle helps you understand how risky an investment is compared to the return you can expect.
Risk-Return Ratio
That sweet spot when your long term investing starts to earn more in compounding interest than your contribution.
About 10 years
The 5th foundation is for people who have no debt and have a fully funded emergency fund. Their mantra is...
"Live and Give like no one else."
Car insurance, or HOA fees, or a yearbook are all examples of which type of expense.
Intermittent
It takes 2 things to build wealth and become a millionaire.
Time
The names for upward and downward trends in the stock market are
Bull and Bear market
Its never a good idea to have the same of everything. In investing we call this....
Diversification