PFM - Chapter 4, Lesson 6

Question 1

How many Americans are living paycheck to paycheck?

Answer 1

78%

Question 2

The Second Foundation

Answer 2

Get out of debt and stay out of debt

Question 3

What puts you financially ahead of most Americans (to start)?

Answer 3

Being debt-free with a small amount of income

Question 4

Aside from ___________________, debt is NEVER an option.

Answer 4

A home mortgage

Question 5

The First Foundation

Answer 5

Save a $500 emergency fund

Question 5

Steps of the Debt Snowball Method

Answer 5

1) List all of your debts from smallest to largest, regardless of interest
2) Attack the smallest debt
3) Every time you pay off a debt, add the amount you were paying on that debt to the next debt payment.
4) Repeat this method until all of your debt is paid off.

Question 5

Debt steals your ability to be as ___________________ as you want to be.

Answer 5

Generous

Question 6

How you spend and give your money…

Answer 6

reflects who you are

Question 7

What do you have if you do not have debt?

Answer 7

Hope
- Hope for the future

Question 8

What is debt?

Answer 8

A financial trap, not a financial tool, like your income.