Dave Ramsey Ch. 2 Review

Front

For which of the following should you save? Purchases, Emergency fund, Wealth building

Back

All of these

Front

Which of these is not a key to saving money?
Making saving a habit and a priority, Focus, Discipline

Back

Amount of income

Front

Which of the following steps is the First Foundation? (p. 32) Options: Pay cash for your car, Build wealth and give, Save a $500 emergency fund, Get out of debt

Back

Save a $500 emergency fund

Front

What is the second foundation (p. 32)

Back

Get Out of Debt

Front

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

Back

The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.

Front

Which of the following is a reason that people don't save money? They do not live on a budget, They lack focus, They lack discipline, All of these

Back

All of these

Front

This principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This is due to both the opportunity to earn interest on the money and because inflation will drive prices up, thereby changing the "value" of the money.

Back

Time value of money

Front

What two things do you consider when evaluating the time value of money?

Back

Inflation and Interest Earned

Front

An account that generates interest income on the available balance in the account.

Back

Interest Bearing Account

Front

The five steps to financial success.

Back

The Five Foundations