Midterm Flashcards
1
Q
Baby Step #1
A
$500/ $1000 in an emergency fund
2
Q
Baby Step #3
A
3-6 month of expenses
3
Q
Compound Interest
A
interest upon interest
4
Q
Murphy’s law
A
If it can go wrong it will
5
Q
Key to wealth building
A
Discipline
6
Q
Money is neither good nor bad
A
Amoral
7
Q
Money Market mutual fund
A
Complete emergency fund goes here
8
Q
For most families, a fully funded emergency fund is approx.
A
8,000 or more
9
Q
What does PAC stand for
A
Pre-Authorized Checking
10
Q
How many baby steps are there
A
7
11
Q
What is the 80/ 20 rule
A
80% is behavior and 20% is head knowledge
12
Q
True or False: You need a zero based budget
A
True
13
Q
True or False: A budget will be the same every month
A
False
14
Q
Sinking Fund
A
Saving money for a purchase and letting the interest work for you rather than against you.
15
Q
Paradigm
A
The way you see the world
