Why Should I Invest?
True or False - Over time, savings accounts outperform the returns of investing in the stock market
What is - False?
Investors often buy these stocks, known for their potential to pay regular dividends, to generate income as well as capital appreciation.
What are dividend stocks?
This term describes a financial plan for how you will spend your money each month.
What is a budget?
This popular retirement savings account offered by employers often includes a matching contribution from the company.
What is a 401k?
This phrase refers to the way you think and feel about money, influencing your financial habits and decisions.
What is your Money Mindset?
This economic phenomenon, characterized by rising prices, can erode the purchasing power of your money, making investing a crucial strategy for financial protection.
What is inflation?
This term refers to a share of ownership in a company, representing a claim on its assets and earnings.
What is a stock?
This is the amount of money you earn after taxes and deductions are taken out.
What is net income?
This type of retirement savings account offers tax-free growth, but contributions are made with after-tax dollars.
What is a Roth IRA?
This type of mindset is characterized by a belief that there’s never enough money, leading to stress and fear of financial insecurity
What is a scarcity mindset?
This term describes the strategy of earning returns on both your initial investment and the accumulated returns over time.
What is compound growth?
This type of bond is issued by corporations and typically offers higher yields than government bonds due to increased risk.
What is a corporate bond?
This type of expense does not change from month to month, like rent or a car payment.
What are fixed expenses?
The government program that provides retirement income to workers who have paid into it through payroll taxes
What is Social Security?
The opposite of a scarcity mindset, this mindset involves believing that there are abundant opportunities for financial growth and success.
What is an abundance mindset?
This type of income, generated from investments such as dividends or rental properties, can provide financial stability without active work.
What is passive income?
This type of bond is issued to finance specific projects, such as infrastructure or environmental initiatives, and is often backed by the revenue generated from those projects.
What is a municipal bond?
This popular financial advice suggests setting aside at least 20% of your income for this.
What is Saving?
Financial experts often recommend saving this percentage of your income each year for retirement.
What is 15%?
This is the term for a belief system that connects financial success with having control over your emotions, thoughts, and actions regarding money.
What is financial self-discipline?
What is the "Rule" that tells you, getting some kind of interest, how long it will take your money to double?
What is the Rule of 72?
A ________is a type of debt security in which an investor loans money to an issuer (typically a corporation or government) for a specified period of time at a fixed interest rate.
What is a bond?
The percentage of your income experts recommend you spend on housing, including rent or mortgage.
What is 30%?
This principle involves earning interest not only on your initial investment but also on the interest your investment earns over time.
What is compound interest?
This mindset shift focuses on setting long-term financial goals and being intentional about spending to align with those goals.
What is a goal-oriented money mindset?