Chapter 3 Ramsey Classroom

Front

45% of Americans have less than $1,000 saved for a(n) .

Back

Emergency

Front

Once you have a $500 emergency fund, you should . . .

Back

Save it until you have an emergency

Front

The first step you should take when you want to make a large purchase is . . .

Back

Decide how much you'll need to save and the time frame you want to save it in

Front

The best way to build wealth is to start investing early. You should start investing money . . .

Back

Once you're out of college, living debt-free, and have 3–6 months of living expenses saved

Front

Why do some accounts, like savings accounts at your local bank, earn interest?

Back

Because the bank pays you to use your money

Front

It's not IF an emergency will happen, but .

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When

Front

The only place you should keep your emergency fund money is...

Back

A savings account or money market account.

Front

If people saved the equivalent of a car payment each month for a year or two (instead of spending it on payments and interest), they could have enough money to buy a car with cash for much cheaper!

Back

True

Front

Which two habits are the most important for building wealth and becoming a millionaire? Options: Working a high-paying job and relying on a trust fund, Always paying off your credit card on time and putting extra money into a retirement account, Investing into the right stocks and using a private CPA, Consistently investing money and patience to give it time to grow

Back

Consistently investing money and patience to give it time to grow

Front

The interest rate on a savings account determines . . .

Back

How quickly your money will grow over time