Foundations
Save at least $500 or more in emergency savings
1st Foundation
The definition of Debt is...
money owed to another person or company
What is a financial plan?
Map to get from where you are, to where you want to be with your money.
How long should a short term goal take?
Up to two years
What is Net-worth?
Amount of money or worth after you pay off all your debts.
Pay Cash for a car
3rd Foundation
Not having debt can lead to...
Financial Freedom
What does planning and setting goals for money keep you from?
Running out of money too quickly.
How long should a medium-term take?
2 to 5 years
Net worth=
assets and liabilities
Build Wealth and give
5th Doundation
Without any debt, you should..
Save, Invest, and Be generous
What are the five things you should do to help maintain your goals?
Specific, Measurable, Time, Yours, Written
How long does a long-term take?
Longer than 5
Definition of Net income..
Often referred to as take home pay
Get out and stay out of debt
2nd Foundation
What is the largest type of debt in the U.S
Mortgage
4 things 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 will reach those goals.
It is important to..
stay consistent
Positive Net Worth
the dollar value of a persons assets is greater than the dollar value of their liabilities
Paying Cash for college
4th Foundation
To be debt-free, follow two life principles:
Always have a budget and live on less than you make
Financial Literacy is:
the knowledge and skill base necessary for people to be in forms consumers and manage their finances effectively.
What three things should you double check your goals with?
Are they personal, will you hold accountable, What are specific steps needed for you to achieve your money goals
Negative Net worth
the dollar value of the persons liabilities is larger than the value of the persons assets.