Chapter 3--Savings

You'll have less freedom with your money if you . . .

• Invest in the stock market

• Are paying for things in your past

• Put money in a bank account

• Make less than $35,000

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

• Start putting it toward debt

• Invest it in the stock market to grow

  your money

• Save it until you have an emergency

• Use the money to pay for health insurance

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

• Once you have a fully funded emergency

  fund

• Once you're out of college, living debt-free,

  and have 3–6 months of living expenses saved

• When the stock market is performing

  really well

• As soon as you have extra cash

If you really want to save money, you've got to . . .

• Fly economy class

• Live on less than you make

• Invest in a Roth IRA

• Have a financial advisor

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

• A savings account or money market account.

• A safe in your bedroom

• A Roth IRA

• An envelope in a safe place

The interest rate on a savings account determines . . .

• How much money you need to have to open

  the account

• How much you will pay the bank to manage

  the account

• The amount of time your money will be in

  the account

• How quickly your money will grow over time

____________ is a millionaire's best friend.

• Accrued interest

• Compound interest

• High returns

• Profit sharing

The main reasons for saving your hard-earned money are . . .

• Emergencies, large purchases, and wealth

  building

• Paying for your dream home, buying your

  dream car, and going on your dream vacation

• Buying gifts, donating to charities, and

  building up a college fund for your kids

• Investing, indulging, and influencing

The top three careers reported among millionaires were _____, ______, and _______.

• Pro athletes; bankers; CEOs

• Lawyers; surgeons; accountants

• Celebrities; developers; writers

• Accountants; engineers; teachers

While saving money isn't easy at first, it will make your life a lot in the future if you

make it a habit now.

• Easier

• Harder

• Poorer

• Longer