Dave Ramsey Personal Finance Chapter 2 Questions and Answers

Dave Ramsey Personal Finance Chapter 2 Questions and Answers What is the first foundation in Dave's 5 foundations? - Answer️️ -Save $500 in an emergency fund Some people borrow money for large purchases, but we know that we should set our money aside in a ________________ over time and then pay for the big purchase in cash. - Answer️️ -Sinking Fund Spending more money than you make & acquiring debt - Answer️️ -Negative savings rate Money today has different buying power than the same amount of money in the future - Answer️️ -Time Value of Money What are 3 things that you should save for? - Answer️️ -Purchases, Wealth Building & Emergency Fund Using the sinking fund approach, how much do you have to save each month to buy a $4,800 car one year from now? - Answer️️ -$400 At your age, what is the amount that your emergency fund should have at all times? - Answer️️ -$500 What is not a key factor to saving money? - Answer️️ -Your income The savings habit of _______ best illustrate the length of time money is invested matters & rate of return matters. - Answer️️ -Ben & Arthur