Upgrade to remove ads
Financial Peace Test Chapters 7&8
Terms in this set (31)
Bargaining is a type of...
negotiation in which the buyer and seller of a good or service dispute the price that will be paid and the exact nature of the transaction
The first key to opening the door to huge bargains is learning to _________ everything
"Find someone that's winning at something and _________"
do what they're doing
Why should you use the power of cash?
Cash is emotional. Cash is visual. Cash has immediacy.
If you are not prepared to walk away from the purchase, you will lose your ability to _________.
List the seven basic rules of negotiating and explain them:
1. Always tell the truth
2. Use the power of cash
3. Understand the use of walk away power
4. Shut up
5. "That's not good enough"
6. Good guy bad guy technique
7. "If I" take away technique
Why is silence powerful when negotiating a deal?
it puts pressure on them to seal the deal
What are the three keys for getting bargains?
2. Have patience
3. Knowing where to find good deals
Where can you find great deals?
#1 is __________. Why?
#2 is online ___________. #1 example?
#3 is conventions. Why?
individuals. Because they aren't trying to make a profit.
They're virtually willing to give their stuff away because they don't want to pack it up and take it home
List the five ways to help stretch your hard-earned money
1. Keep your eye on the calander
2. Get outdated technology
3. Comparison shop
4. Make a deal
5. Buy off brand when possible
Why is the mall not a good place to find deals?
Because you pay retail price
Describe the cost benefit of buying slightly outdated products
Chances are the bells and whistles added to the latest versions aren't worth the money
A risk management technique that makes a wide variety of investments within a portfolio
When it comes to investing, "Don't put all your __________-"
Eggs in one basket
Throughout the stock market's history, there has never been a ______ year period that didn't make money
When you factor inflation and taxes into your investing strategy, you have to make more than ______% in order to actually make money
Why are money market accounts great for your emergency fund?
They have liquidity and stability
Define mutual fund:
An investment vehicle made up of a pool of _____________"
money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and similar assets.
"__________- is the most powerful part of your wealth building strategy"
Using the rule of 72, how long will it take you to double your money with the following interest rates? 6% _______, 8% ______.
12 years, 9 years.
What are the three downfalls of investing in real estate?
1. it is costly to buy, sell, and maintain
2. it requires management
3. investment market is cyclical based on supply and demand
List two of the things Dave has listed as horrible investments and tell me why they are so:
Gold has a 50-year trade record of 4% returns
Day trading involves speculation so it is very high risk
What is a bull market?
An upward market
What is a bear market?
A downward market
Where did the terms bull/bear market come from?
Direction the animals attack
If an investment is tax-deferred, what does that mean?
The holder is taxed at the time of withdrawl
What is the purpose of an employee benefits package?
"To increase _____________"
The financial security of staff members, and in doing so, improve worker retention
List 5 common employee benefits
1. Retirement plans
2. Savings plans
5. Stock purchase
What is the trick to winning with compound interest?
To start as soon as possible
What are 5 common traits of the typical millionaire?
1. Read one non-fiction book a month
2. Typically self-employed
3. Typically drive used cars
4. Most are the first generation rich
5. Has no need to impress others
What is 529 plan?
A savings plan to help families set aside funds for future college costs
YOU MIGHT ALSO LIKE...
FIL 241 Exam 2
Exam 2 Questions FIN3244
Economics book 8 unit 2
Unit 4 - Saving and Investing
OTHER SETS BY THIS CREATOR
day 5 2020 market menu
Texas Roadhouse Bar Review
pharmacology terms module A
Social Theory Midterm