Three Basic Reasons to Save Money
It is false that most Americans do this with their savings.
What is having a high savings rate, or saving their money properly?
This is the first step, or the first foundation to savings and building wealth.
What is saving $500 for an emergency fund?
This is the addition of interest to the principal sum of a loan or deposit, or in other words,interest on interest.
What is compound interest?
First thing you save for. You need it in case of a rainy day.
What is your emergency fund?
These are the three reasons that you need to start saving.
What are emergency funds, purchases, and wealth building?
This is the second foundation to saving and building wealth.
What is getting out of debt?
What two things do I need to consider when evaluating the time value of money?
Interest Rate, Inflation,
The second foundation is to pay off all your debt. Mr. Nichols instead encourages his students to
What is "not get into debt?"
It is true that you should not use this fund for frivolous expenses.
What is your emergency fund?
According to Dave Ramsey, this is the third foundation.
What is paying cash for your car?
Percentage paid to a lender for the use of borrowed money; percentage earned on invested principal.
What is Interest Rate?
Don't go into debt over this item, especially because it depreciates (loses value) over time.
What is a vehicle?
This is not a key factor in saving money for yourself.
Income.
Building wealth is a ________ not a ________
What is "marathon not a sprint?"
Double Jeopardy: This is the persistent rise of the cost of goods and services. This also contributes to an increasing money amount in future investments.
What is inflation?
Your greatest wealth building tool.
What is your income?
This is the fund that you build over time for a large purchase in your future.
What is a sinking fund?
Double Jeopardy: According to Dave Ramsey, saving money is not difficult if I make it a priority. Saving money is about ___________ and _____________.
What is building wealth and giving? And what is contentment and emotion?
These are the two most important things that contribute to savings and compound interest in an investment.
What are the rate of return and the amount of time, or the time value of money?
3-6 months of expenses
What is a fully funded emergency fund?