Dave Ramsey 1.2 Flashcard

Front

At age 26, what was Dave Ramsey's net worth?

Back

More than $1 Million.

Front

Prior to the 1970’s, how did most Americans view debt?

Back

They were ashamed of it.

Front

Do most Americans avoid using credit for big ticket items like cars or houses?

Back

False.

Front

Does the debt system help people gain wealth?

Back

False.

Front

How much are Americans charging on their credit cards each year?

Back

More than a trillion dollars.

Front

What is the definition of net worth?

Back

Net worth is the total assets minus total liabilities.

Front

What is the impact of credit card debt on personal finance?

Back

It can lead to financial instability and increased interest payments.

Front

What is a common misconception about debt?

Back

That it is a necessary tool for building wealth.

Front

What is the difference between good debt and bad debt?

Back

Good debt is an investment that will grow in value, while bad debt is for depreciating assets.

Front

What is the significance of budgeting in personal finance?

Back

Budgeting helps track income and expenses, ensuring financial goals are met.