Personal Finance
Personal Finance =
80% behavior and only 20% head knowledge.
1st Foundation
What is the 1st type of Goal? How long does it take?
Short term - 2 Years to Reach
Debt
Money owed to another person or company
Consumer
A person or organization that uses a product or service
To be debt-free, follow two life principles:
Always have a budget
Live on less than u make
2nd Foundation
Get out of Debt
What is the 2nd type of Goal? How long does it take?
Medium - 5 Years to reach
Credit
The granting of a loan and the creation of debt; any form of deferred payment
Paycheck to Paycheck
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
What type of debt is the largest in the U.S.?
Mortgages
3rd Foundation
Pay Cash for your Car
What is the 3rd type of Goal? How long does it take?
Long Term - Longer than 5 years
Interest rate
the percentage of principal charged by the lender for use of its money
The Five Foundations is a…
Dave Ramsey's personal finance steps for financial success
Bad history with credit typically means a…
Low credit score
5th Foundation
Build Wealth and Give
Net worth = what?
Assets - Liabilities
Personal Finance
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
To make the most progress, it is important to…
To make the most progress, it is important to follow the five foundations in order.
Without any debt, you should… (Hint: There are 3 steps)
Save
Invest
Outrageously generous
4th Foundation
Pay Cash for College
Planning and setting goals for your money will help keep you from…
Accumulating Debt
Financial plan
A plan of action that allows a person to meet not only their immediate needs but also their long-term goals
Not having debt can lead to…
Lead to significant financial freedom