Fun Facts
Less than half of Americans have $___ saved for emergencies.
$1000
Save $___ for an ____ fund.
Save $500 for an emergency fund
Define Debt
Owing money to people for any reason.
Define Principal
The initial amount of money invested or borrowed.
Americans typically have a ___ ___ saving rate.
Very Low
What is the trick to compound interest?
To start right now
What should you do with debt?
Get out and stay out of debt
Paying debts from your ___ causes you to have ____ freedom today.
Paying debts from your past causes you to have freedom today.
Define compound growth
A _____ fund is saving money over time for a ____ purchase.
A saving fund is saving money over time for a large purchase.
In order to outpace inflation, your investments need to earn more than what?
The rate of inflation
What should you pay cash for?
College and your Car
Most people do not have any money to invest because they are in ___ and living _____ to _____.
Debt, Paycheck to paycheck
Define Rate of Return
Measure of an investments profit or loss, usually expressed as a percentage of initial investment.
Living on ___ than you make allows you to __/__ money.
Living on less than you make allows you to keep/save money.
Teachers, engineers, accountants.
Name the fifth foundation
Build wealth and be outrageously generous
A negative savings rate which meant that we spend ___ money than we ___ and acquired __ debt.
A negative savings rate which meant that we spent more money than we made and acquired more debt.
Without looking at the notes, remember and define any key term from chapter 3.
Emergency fund, large purchase, interest rate, accrued interest, compound growth, compound interest, principal, rate of return, inflation, or time value of money
What should your emergency fund be made up of as an adult?
3-6 months of your monthly expenses.
Your ___ level has nothing to do with your _____ habits.
Your income level has nothing to do with your spending habits.
What comes after the five foundations?
The Seven baby steps
Name 5 types of debt.
Credit cards, student loans, car loans, etc.
Define Time Value of Money
Concept that an amount of money is worth more in the future than today due to earning potential.
People start ___ money when it becomes ____ to them.
People start saving money when it becomes important to them.