Ch.6 save $1000 Fast: walk before you run

Question 1

Should you go fast or slow when starting your Money makeover?

Answer 1

slow, baby steps and work your way up

Question 2

How should you attack a problem?

Answer 2

attack it with vigor/ put your all into the problem until it’s completed then move on

Question 3

should you shortcut the process?

Answer 3

no

Question 4

how often should you set up a budget?

Answer 4

for every month you should create a budget. Tell your money where to go

Question 5

what do winners do?

Answer 5

they write down their goals

Question 6

when budgeting for the next month what should you do with the money?

Answer 6

use up every dollar, if you know your finances will be irregular use the irregular planning sheet

Question 7

what two things should you remember concerning your budget?

Answer 7

stick to the budget
balance your budget ( i.e. if you spend $50 somewhere, you need to move $50 from somewhere else to balance it out)

Question 8

What is a cash-value Policy

Answer 8

the portion of a permanent life insurance policy that grows over time, potentially allowing policyholders to access funds. Takes a percentage from your premium

Question 9

what is term insurance

Answer 9

type of life insurance that offers life coverage for a fixed duration

Question 10

what is a rainy day fund

Answer 10

catches little things while the emergency fund is getting funded

Question 11

what’s the rule of thumb for how much your emergency fund should be?

Answer 11

if it’s <$20,000 you should save $500
if it’s >$20,000 you should save $1000

Question 12

how long before your emergency fund is funded?

Answer 12

under a month

Question 13

should you keep your emergency fund accessible?

Answer 13

no; hide it so it’s hard to get into