VOCABULARY
THE 5 STEPS TO FINANCIAL SUCESS
THE 5 FOUNDATIONS
1ST FOUNDATION
SAVE 500$ EMERGENCY FUND
AT YOUR AGE, A FULLY FUNDED EMERGENCY FUND SHOULD BE.
$500.00
USE THE SINKING FUND APPROACH TO PAY FOR 1000 FOR NEW TIRES IN 7 MONTHS
142.85 A MONTH
RACHAEL CRUZE IS DAVE RAMSEY'S DAUGHTER.
TRUE
A SAVINGS ACCOUNT THAT IS SET ASIDE TO BE USED ONLY FOR EMERGENCY EXPENSES
EMERGENCY FUND
3RD FOUNDATION
PAY CASH FOR CAR
TRUE OR FALSE:
YOUR INCOME LEVEL GREATLY AFFECTS YOUR SAVING HABITS.
FALSE
USE SINKING FUND APPROACH TO PAY 1600 IN 8 MONTHS.
$200 A MONTH
WHEN YOU ARE OLDER AND OUT OF SCHOOL, YOU'LL NEED TO GROW YOUR EMERGENCY FUND INTO A FULL 3-5 MONTHS WORTH OF EXPENSES.
FALSE
3-6 MONTHS
INTEREST PAID ON INTEREST PREVIOUSLY EARNED
COMPOUND INTEREST
4TH FOUNDATION
PAY CASH FOR COLLEGE
AN _______________________ ALLOWS YOU TO HAVE MONEY AVAILABLE FOR SURPRISE PURCHASES.
EMERGENCY FUND
STARTING VALUE 250
RATE OF RETURN 12%
TIME 40 YEARS
USE COMPOUND INTEREST FORMULA
23,262
DISCIPLINE IS THE KEY INGREDIENT WHEN IT COMES TO WEALTH BUILDING
TRUE
A RATE WHICH IS EITHER CHARGED (ON DEBT) OR PAID (ON INVESTMENT ACCOUNTS) FOR THE USE OF MONEY
INTEREST RATE
2ND FOUNDATION
GET OUT OF DEBT
INSTEAD OF BORROWING FOR BIG PURCHASES, PAY CASH BY USING THE _________________________ APPROACH
SINKING FUND
STARTING VALUE 500
RATE OF RETURN 18%
TIME 4 YEARS
USE COMPOUND INTEREST FORMULA
969.39
WHEN IT COMES TO SPENDING MONEY, THE AMOUNT YOU SAVE IS DETERMINED BY HOW MUCH YOU HAVE LEFT AT THE END OF THE MONTH ONCE ALLOF YOUR SPENDING IS DONE.
FALSE
THE PERSISTENT INCREASE IN THE COST OF GOODS AND SERVICES OR THE PERSISTENT DECLINE IN THE PURCHASING POWER OF MONEY.
INFLATION
5TH FOUNDATION
BUILD WEALTH AND GIVE
WHAT ARE THE 3 BASIC REASONS FOR SAVING MONEY.
EMERGENCY
BIG PURCHASES
WEALTH BUILDING
STARTING VALUE 1000
RATE OF RETURN 6%
TIME 3 YEARS
USE COMPOUND INTEREST FORMULA
1,191.02
COMPOUND INTEREST IS AN ACCOUNT THAT GENERATES INCOME ON THE AVALIABLE BALANCE IN THE ACCOUNT
FALSE
INTEREST-BEARING ACCOUNT