W05 Financial Stewardship Flashcards
In the self-reliant approach to finances, what is the first thing you do after receiving money?
Pay the Lord first.
What biblical story is cited as an example of preparing for financial hardship?
Joseph of egypt
How much of a financial reserve is generally advised for emergency situations?
3-6 months of living costs.
What is a debt inventory?
Calculating your amount of debts in order to plan how to pay them off.
What is the debt roll-over method?
When you pay off a debt, use that money to pay off another debt. Snowball effect.
What are the three basic principles advised for saving and investing for the future?
Save money. Seek education. Set a retirement goal.
What tool is described as a plan for how you will use your money for a certain period of time?
A budget
What are the two basic ways to fix a budget deficit where expenses exceed net income?
Earn more, spend less
Out of the seven priorities. What are your financial priorities?
Paying credit cards, developing a one month emergency fund
Are you spending more than you earn?In what areas could you decrease you spending?
Do your inventory
