Midterm Flashcards
Baby Step #1
$500/ $1000 in an emergency fund
Baby Step #3
3-6 month of expenses
Compound Interest
interest upon interest
Murphy’s law
If it can go wrong it will
Key to wealth building
Discipline
Money is neither good nor bad
Amoral
Money Market mutual fund
Complete emergency fund goes here
For most families, a fully funded emergency fund is approx.
8,000 or more
What does PAC stand for
Pre-Authorized Checking
How many baby steps are there
7
What is the 80/ 20 rule
80% is behavior and 20% is head knowledge
True or False: You need a zero based budget
True
True or False: A budget will be the same every month
False
Sinking Fund
Saving money for a purchase and letting the interest work for you rather than against you.
Paradigm
The way you see the world
What charges 400% and up for their services?
Cash Advance
What is a mortgage rate that does not have a fixed interest?
ARM (Adjustable Rate Mortgage)
Debt consolidation is?
Combining several debts into one payment.
Leasing is?
A long-term rental agreement
True or False: Debt consolidation is wise
False
True or False: It is never a good idea to take out an ARM or balloon mortgage
True
True or False: Home equality loans are a good way to consolidate debt
False
A budget committee meeting should last how long?
10-20 min
Borrowing money and paying over time is:
financing
How many advertisements are seen each day by the average person?
3,000
Caveat Emptor (meaning)
buying beware
True or False: 90-Days-Same-As-Cash contracts convert to payments with interest up to 24% AP.
True
