Dave Ramsey Chapter 3 Questions with Verified Solutions

Dave Ramsey Chapter 3 Questions with Verified Solutions 47% of Americans have less than $1,000 saved for a(n) _________. Emergency You'll have less freedom with your money if you . . . Are paying for things in your past Once you have a $500 emergency fund, you should . . . Save it until you have an emergency The first step you should take when you want to make a large purchase is . . . Decide how much you'll need to save and the time frame you want to save it in The best way to build wealth is to start investing early. You should start investing money . . . Once you're out of college, living debt-free, and have 3-6 months of living expenses saved Why do some accounts, like savings accounts at your local bank, earn interest? Because the bank pays you to use your money It's not IF an emergency will happen, but ________. When If you really want to save money, you've got to . . . Live on less than you make The only place you should keep your emergency fund money is.. A savings account or money market account. T/F If people saved the equivalent of a car payment each month for a year or two (instead of spending it on payments and interest), they could have enough money to buy a car with cash for much cheaper! True Which two habits are the most important for building wealth and becoming a millionaire? Consistently investing money and patience to give it time to grow The interest rate on a savings account determines . . . How quickly your money will grow over time T/F Debt is a tool to use to make you wealthy. False T/F You should budget in this order: giving, savings, spending. True _______ is a millionaire's best friend. Compound growth The purpose of an emergency fund is to . . . Be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong. Why do stores rarely advertise the full price of big purchases like smartphones? By showing you only the monthly payment, they make the product seem affordable. Compound interest is earned at a fixed rate, while _______ is an average based on an investment's past performance. Compound growth