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11 Cards in this Set
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- Back
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T or F - first thing u should save up for is ur retirement fund - preauthorized checking help build discipline in savings - 1st baby step is pay all your debt - money market is a good place for ur emergency fund - sinking fund is what really makes money grow over time |
F T F T F |
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- 80/20 rule is 80% knowledge 20% behaviour - rate of return matters when it comes to compound interest - if we used a race analogy to describe building wealth, it would be a sprint - you should put 10% of ur household income into roth IRAs and pre tax retirement plans - Murphy’s law is more likely to strike if you are prepared for the unexpected events that occur throughout life |
F T F __ F |
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place of emergency fund should be in this type of account baby step 1 is typical american has ___________ savings rate saving must become a ________ emergency fund is not a big ____ |
money market $500-$1000 negative Priority insurance? |
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a fully funded emergency fund is _____ months of expenses pay yourself ____ use the _________ approach instead of borrowing to purchase things the % by which ur money grow is called ___________ ______ says whatever can go wrong will go wrong |
3-6 months first sinking fund rate of return Murphy’s law |
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saving habits of ben & arthur best illustrate... what is the most sensible way to buy a $4000 car correct order of priorities for ur money key to saving money reasons for saving |
rate of return matters & length of time money is incensed matters use sinking fund approach and save $400 a month for 10 months save, pay bills, give make savings a habit/priority, discipline, focus emergency fund, purchases, wealth building |
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how much money should lisa & joe save in their emergency fund if they have $3000 credit card bill & mortgage |
3-6 months in expenses |
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why is a money market a better place to keep your emergency fund? (3) |
- savings account is too easy to access - typically money market average higher interest rate than a savings account - money market is accessible and generally has check writing privileges if needed |
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good way to help build discipline and get into savings is... for most people (excluding students) a fully funded emergency fund will be about |
pre-authorized checking $10,000-$15,000 |
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invest $1000, 12% interest, how much will be in the account after 2 yrs compounded annually savings is about what’s true about the concept of saving |
$1254.40 emotion & contentment you must pay yourself first |
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sinking fund approach means which statement is most true about a one time investment for 40 years what is the next step after you have a fully funded emergency fund |
saving and paying cash annual interest rate doesn’t matter when making a one time investment invest 15% of your income into roth IRAs and pre-tax retirement plans |
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What statement is true? using sinking fund approach, how much do u need to save to buy a $5000 car next year how much should you have in ur emergency fund if u are working on baby step 2 |
when you pay with cash, you can almost always negotiate a better deal $416.66 into savings $500-$1000 depending on ur income |
