Chapter 1~3: 20 Questions

Question 1

What is the difference between chequing and saving accounts?

Answer 1

If you want to manage your daily transactions, you should use a chequing account. However, if you’re looking to save money in the short and long term, a saving account can help you acheive your goals.

Question 2

Is it true or false that Dave Ramsey says we should avoid all the types of insurance?

Answer 2

False. Although some types of insurance are unnecessary or excessive, he suggests having essential insurance coverage, such as health insuracne, auto insurance, etc.

Question 3

What is an impulse purchase?

Answer 3

An item that is bought without previous planning or consideration of the long term effects.

Question 4

📌What is a cash flow statement?

특정 기간 동안의 총 수입과 지출을 보여주는 요약입니다.

Answer 4

A summary that shows total income and spending for a given time period.

Question 5

What is the first step of the 7 steps for Dave Ramsey’s financial peace?

Answer 5

Assess your financial situation.

Question 6

What is an overdraft?

이는 은행 계좌에서 돈이 인출되어 사용 가능한 잔액이 0 이하로 떨어질 때 발생합니다.

Answer 6

This occurs when money is withdrawn from a bank account and the available balance goes below zero.

Question 7

What’s the percentage for behaviour and knowledge?

Answer 7

Personal finance is 80% behaviour and 20% head knowledge.

Question 8

What’s an emergency fund?

첫 번째 재단은 긴급 상황에만 즉시 사용할 수 있는 500달러의 현금을 확보하는 것을 목표로 하고 있습니다. 이를 긴급 자금

Answer 8

The first foundation aims to have 500 dollars in cash readily availble for use only in case of an emergency. This is known as the Emergency Fund.

Question 9

빚을 갚는 방법입니다. 먼저 가장 작은 빚을 갚는 것부터 시작한 다음 더 큰 빚으로 넘어가는 것입니다.

What’s the debt snowball methoad?

더 큰 부채에 대해서는 최소한의 지불금을 지불하고 가장 작은 부채는 가능한 한 빨리 갚습니다.

Answer 9

A way of paying off debts. It involves starting by paying off your smallest debt first and then moving on to the larger ones. You make minimum payments on your bigger debts and pay off your smallest debt as quick as possible.

Question 10

What are the 5 foundations?

Answer 10

1. Start a $500 emergency fund, 2. Get out of debt, 3. Pay cash for your car, 4. Pay cash for your college, and 5. Build wealth and lastly give.

Question 11

What is the zero based budget?

소득의 모든 금액을 비용에 할당하여 돈을 관리하는 계획입니다. 즉, 총 수입에서 지출 총액을 빼면 0이 됩니다.

Answer 11

A plan that manages your money by allocating every dollar of your income to an expense. This means that the total amount of your expenses is subtracted from your total income, resulting in zero.

Question 12

Why is compound interest important?

이자로 벌어들이는 금액이 늘어나기 때문에 중요합니다.

Answer 12

It’s important because the amount you earn from interest grows.

Question 13

What is a budget?

수입과 지출을 기준으로 한 지출 계획입니다.

Answer 13

A spending plan based on income and expenses.

Question 14

Define Personal Finance.

시간이 지남에 따라 돈을 벌고, 예산을 책정하고, 저축하고 지출하기 위해 가족이나 개인이 내리는 재정적 결정입니다.

Answer 14

Financial decisions a family or individuals make in order to earn, budget, save and spend over time.

Question 15

According to Dave Ramsey, What is the first thing you should do when you recieve your paycheck?

Answer 15

Check if it’s correct.

Question 16

What’s an example you can use for a 500 dollar emergency fund?

Answer 16

If your car breaks down and needs a $400 repair, you can use your $500 emergency fund to cover the cost. This prevents you from relying on credit cards or loans and helps you avoid debt and financial stress.

Question 17

What is his view on using debt to purchase a car?

Answer 17

Pay with cash

Question 18

What’s the advantage of budgeting every dollar?

1달러가 작은 것처럼 보일 수도 있지만 시간이 지나면 상당한 금액이 될 수 있습니다.

Answer 18

Although one dollar may seem small, it can add up to a significant amount over time.

Question 19

What does Dave Ramsey suggest where the best way to determine where your money is going?

Answer 19

Get on a budget

Question 20

According to Dave Ramsey, what is the key to building Wealth?

Answer 20

Get out of debt.

Question 21

What is a credit?

Answer 21

An act of lending money and creating a debt. It can also be defined as any form of postponed payment.