Dave Ramsey Chapter 1 Questions and Answers

Dave Ramsey Chapter 1 Questions and Answers The first thing you should save for is your retirement fund - t/f - Answer️️ -False. Emergencies. Using pre-authorized checking helps save money - t/f - Answer️️ -True. Your first Baby Step to pay off all your debt - t/f - Answer️️ -False. The first Baby Step is saving $1,000 for an emergency fund A money market mutual fund is the best place for your fully funded emergency fund. - t/f - Answer️️ -True. A sinking fund makes money grow over time by adding interest to previous interest earned. - t/f - Answer️️ -False. Daves 80/20 rule says personal finance is 80% knowledge and 20% behavior. - t/f - Answer️️ -False. The rate of return matters when it comes to compound interest. - t/f - Answer️️ -True Using a race analogy to describe building wealth, saving is most like a sprint. - t/f - Answer️️ -False. Saving is like a marathon. You should invest 10% of your household income into ROTH IRA and pre-taxed retirement plans. -t/f - Answer️️ -False. 15% Murphy's law is more likely to strike if you are prepared for the unexpected events that occur throughout life. t/f - Answer️️ -False.