Financial Milestones Before 40

Why is it important to eliminate consumer debt before turning 40?

• To increase spending on luxury items

• To qualify for more loans

• To focus on building net worth

• To reduce monthly income

By the age of 40, how much should you aim to have saved for retirement according to the video?

• Three times your annual salary

• Equal to your annual salary

• Twice your annual salary

• Half of your annual salary

What is the recommended amount of expenses to save in an emergency fund?

• 1 to 2 months of expenses

• 3 to 6 months of expenses

• 6 to 12 months of expenses

• 12 to 18 months of expenses

What is lifestyle inflation and why should it be avoided?

• Spending more on necessities as income rises, which is beneficial

• Maintaining the same spending regardless of income, which can cause debt

• Decreasing spending as income rises, which can lead to financial instability

• Increasing spending as income rises, which can delay financial freedom

What is a 529 plan and what benefit does it offer?

• A loan plan for buying a house with low interest

• A savings account for emergencies with high interest

• A retirement savings plan with no tax benefits

• An investment account for education with tax advantages