Ch. 3 Personal Foundations Dave Ramsey

What are the 5 foundations of personal finance?

• 1. $500 Emergency Fund
  2. Get out of debt
  3. Pay cash for car
  4. Pay cash for college
  5. Build Wealth and give
• 1. $500 Emergency Fund
  2. Get out of debt
  3. Finance your car
  4. Pay cash for college
  5. Build Wealth and give
• 1. $500 Emergency Fund
  2. Get out of debt
  3. Pay cash for car
  4. Pay cash for college
  5. Give all your money away
• 1. $500 Emergency Fund
  2. Get out of debt
  3. Pay cash for car
  4. Get student loans
  5. Build Wealth and give

How often should you complete a budget?

• Hourly
• Daily
• Weekly
• Monthly

What is a typical overdraft fee charged by a bank?

• $1.50
• $5
• $11
• $35

What is the cost to you for using a credit card?

• Interest
• Late Fees
• Annual Fees
• All of the above

What percentage of families now have a negative net worth?

• 10%
• 25%
• 50%
• 75%

Of divorces that happen in the first 7 years of marriage, what percentage end because of financial reasons?

• 10%
• 30%
• 50%
• 90%

What is the first financial myth that we are going to debunk with Dave Ramsey?

• Cars are dumb
• What myths?
• I need to build credit
• Money is not real

Do you NEED a new car?

• Yes
• No

Income

• Payment received for providing labor
• Something that you owe someone else
• A plan for your money
• Spending

What is disposable income?

• A desired end toward which efforts are directed
• Expenses you have already committed to spending
• The amount of money households have available for spending and saving after income taxes