Chapter1 Flashcards
(27 cards)
Step 1
1,000 in an emergency fund
Step 2
Pay off all debt except the house utilizing the debt snowball
Step 3
Three to six expenses in savings
Step 4
Invest 15% of your household income into Roth IRAs and pre tax retirement plans
Step 5
College funding
Step 6
Pay off your home early
Step 7
Build wealth & give
You should save money for three basic reasons:
- Emergency fund
- Purchases
- Wealth building
Saving money is about ______ and______.
Emotion and contentment
Amoral
Money is neither good nor bad
Compound interest
Interest on interest
Emergency fund
Your backup strategy when unexpected financial events happen
Interest rate
Rate of return
Money market
Emergency fund goes in this
Murphy’s law
If it can go wrong, it will
Sinking fund
Saving money for something, and letting interest work for you than against you
Savings account
Something you keep your money into
Always pay who first?
Yourself
A great place to keep your emergency fund in is..
A good money market
The second thing you save money for is…
Purchases
Instead of borrowing to purchase, pay cash by using a _______ approach.
Sinking fund
Third thing you save money for is..
Wealth building discipline
What’s PAC?
Pre-authorized checking.
Compound interest is also a..
Mathematical explosion
