Chapter1

Question 1

Step 1

Answer 1

1,000 in an emergency fund

Question 2

Step 2

Answer 2

Pay off all debt except the house utilizing the debt snowball

Question 3

Step 3

Answer 3

Three to six expenses in savings

Question 4

Step 4

Answer 4

Invest 15% of your household income into Roth IRAs and pre tax retirement plans

Question 5

Step 5

Answer 5

College funding

Question 6

Step 6

Answer 6

Pay off your home early

Question 7

Step 7

Answer 7

Build wealth & give

Question 8

You should save money for three basic reasons:

Answer 8

1. Emergency fund
2. Purchases
3. Wealth building

Question 9

Saving money is about ______ and______.

Answer 9

Emotion and contentment

Question 10

Amoral

Answer 10

Money is neither good nor bad

Question 11

Compound interest

Answer 11

Interest on interest

Question 12

Emergency fund

Answer 12

Your backup strategy when unexpected financial events happen

Question 13

Interest rate

Answer 13

Rate of return

Question 14

Money market

Answer 14

Emergency fund goes in this

Question 15

Murphy’s law

Answer 15

If it can go wrong, it will

Question 16

Sinking fund

Answer 16

Saving money for something, and letting interest work for you than against you

Question 17

Savings account

Answer 17

Something you keep your money into

Question 18

Always pay who first?

Answer 18

Yourself

Question 19

A great place to keep your emergency fund in is..

Answer 19

A good money market

Question 20

The second thing you save money for is…

Answer 20

Purchases

Question 21

Instead of borrowing to purchase, pay cash by using a _______ approach.

Answer 21

Sinking fund

Question 22

Third thing you save money for is..

Answer 22

Wealth building discipline

Question 23

What’s PAC?

Answer 23

Pre-authorized checking.

Question 24

Compound interest is also a..

Answer 24

Mathematical explosion

Question 25

Explain the relationship between having an emergency fund and Murphy’s law

Answer 25

If something goes wrong you want to know

Question 26

Why do you need to have 1,000 in the bank before paying off debt?

Answer 26

You need your emergency fund before anything goes wrong

Question 27

How does compound interest differ fork. Simple interest

Answer 27

Simple interest is simple, and compound interest is interest on interest