Advice -Understanding Financial Habits and Investment Strategies

What book introduces the concept of paying yourself first?

• The Wealthy Barber

• Rich Dad Poor Dad

• Money: Master the Game

• Think and Grow Rich

According to the video, what should you do first with your paycheck?

• Spend on leisure

• Pay bills

• Buy necessities

• Save a portion

What is the typical interest rate on credit cards as mentioned in the video?

• 22%

• 15%

• 10%

• 30%

What is the impact of bad debt on financial health?

• Increases financial burden

• Leads to financial freedom

• Has no impact

• Increases credit score

What does lifestyle inflation refer to?

• Fixed expenses over time

• Increase in expenses as income increases

• Variable expenses based on seasons

• Decrease in expenses as income decreases

What is a major consequence of not understanding your income and expenses?

• Inability to invest

• All of the above

• Excessive spending

• Lack of financial goals

Which strategy is NOT a way to build wealth?

• Asking for a pay rise

• Investing in the stock market

• Starting a side hustle

• Only using cashback sites

What type of investment account shelters your dividends from taxes?

• Brokerage Account

• Traditional IRA

• 401(k)

• Roth IRA

What is a key reason to avoid leaving money in a savings account for too long?

• Inflation

• Low interest rates

• High fees

• Risk of theft

What is a recommended strategy to handle taxes efficiently?

• Pay the maximum possible taxes

• Avoid paying taxes

• Ignore tax benefits

• Understand and use tax rules to your advantage