20 terms

Dave Ramsey-Chapter 1

Financial Peace School Curriculum Foundations in personal finance Martin's Mill ISD
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Terms in this set (...)

Baby Step 1
$1000 in an emergency fund (or $500 if you make less than $20,000/year)
Step 2
pay off all debt except house
Step 3
3-6 months expenses in savings
Step 4
Invest 15% of your household income into Roth IRA's and retirement
Step 5
College Funding
Step 6
Pay off your home early
Step 7
Build wealth and give!
Compound Interest
interest that is earned on both the initial amount and the previously earned interest.
Savings is about
contentment and emotion.
Priority
savings must become a ____________.
Sinking Fund
saving money for a specific purpose to allow interest to work for you rather than against you.
Interest Rate
does matter when making an investment.
When you pay cash
you can almost always negotiate a better deal.
Money Market
place your emergency fund in this type of account.
Money
is amoral.
Rate of Return
The percentage by which your money grosw is called the ____________________.
Murphy's Law
if something can go wrong it will.
Pay yourself
first.
Pre-Authorized Checking
withdrawals is a good way to build in discipline.
Debt
the state of owing something (especially money)