Five Foundations
Whats the first foundations
Save 500$ for emergency funds
Planning and settings goals for your money will keep you from what?
Running out of money too quickly
What is interest
The cost of borrowing money
What is debt
Money owed/liability
Who’s this course by?
Dave Ramsey
Why should pay cash for your car?
To save money and not get in debt
What are the 3 types of goals?
Short-term, Medium-term, and Long-term
What type of debt is the largest in the U.S?
Mortgages
What is net worth?
Your assets- your liabilities
What is an emergency fund?
Money set aside for unexpected expenses
Can you pay cash for college?
Yes
How long do the 3 types of goals take?
To be debt-free what are the two principles to follow
Always have a budget, and spend less than you make
What is a asset?
Property owned by a person or company
How much should go in your emergency f? (Minimum)
$500.
What should you do when you get out of debt
Stay debt free
What should you do with your goals?
Write down your goals and have a set time to carry them out.
Personal finance is what?
80% behavior 20% head knowledge
What is financial literacy?
Ability to understand and effectively apply financial knowledge and skills.
What is wealth building?
The process of setting aside money long-term to grow your net worth.
Why should you be generous when you are wealthy
Makes you live longer and helps you be happy
How can you maintain your goals?
Be specific, measurable, time-sensitive, yours, and written.
Without debt you should
Save, invest, be outrageously generous.
What is a high Yield saving account?
A HYSA is a type of deposit account that offers significantly higher interest rates than traditional savings accounts
What is Personal Finance?
All the decisions and activities of an individual regarding their money.