Dave Ramsey - Chapter 3 Study Questions and Answers

Dave Ramsey - Chapter 3 Study Questions and Answers budget - Answer️️ -a written cash flow plan cash flow statement - Answer️️ -a summary that shows total income and spending for a given time period carbon check - Answer️️ -a copy of each check you write envelope system - Answer️️ -series of envelopes that are divided into categories and are used to store cash for planned monthly expenses impulse purchase - Answer️️ -an item that is bought without previous planning or consideration of the long-term effects overdraft - Answer️️ -occurs when money is withdrawn from a bank account and the available balance goes below zero reconcile - Answer️️ -to match your bank statement with your checkbook zero-based budget - Answer️️ -a cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero 10 things millionaires do not do - Answer️️ -1) Buy brand new cars. 2) Eat out on a regular basis. 3) Replace what is not broken. 4) Impulse buy. 5) Carry debt. 6) Visit the tanning bed. 7) Buy brand-name clothes. 8) Desire instant gratification. 9) Socialize with people who waste money. 10) Spend more money than they earn. four reasons people avoid budgets - Answer️️ -1) It has a straitjacket connotation. 2) A budget has been used to abuse them. 3) They've never had a budget that worked. 4) Paralysis from fear of what they will find. 7 wealth-building habits - Answer️️ -1) Live on less than you make