Chapter 1 Dave Ramsey Flashcards
Baby Step One
Save 1,000$ to start your emergency funds
Baby Step Two
Pay off all of your debts using snowball
Baby Step Four
Invest 15% of household income into ROTH IRAS
Baby Step Five
college funding
Baby StepSix
Pay off your home early
Baby Step Seven
Build wealth and give
How much do you invest if you make under 20,000 a year?
Invest 500$ monthly
Saving must become a ____________.
Priority
We must pay ___________ first.
Ourself
Saving money is about _____ and _________.
Peace and contentment
Building wealth is not evil or wrong because money is
Amoral
The only difference between saving and hoarding is _______.
Attitude
We should save for 3 basic reasons:
Emergency funds
Purchases
Wealth
Unexpected events do occur, so ________ them.
Expect
A great place to keep emergency fund is in a …
Money Market Account from a Mutual Fund Company
Emergency fund is not an investment but ______________.
Insurance
Do not touch this fund for _________.
Purchases
The emergency fund is your first
Savings priority
Instead or Borrowing, pay cash by using a
Sinking Fund Approach
Discipline is a key ingredient.
True dood
Building wealth is a ___________ and not a ______.
Marathon not a sprint
Just save 100$ a month every month from age 25-65 at 12% will build over 1,176,000$.
True
Pre-Authorized checking withdrawals are a good way to build in __________.
Discipline
Compound interest is a _________________ ____________.
Mathematical Explosion
