Dave Ramsey Personal Finance Chapter 1 Post Test Study Guide Rated A+

Dave Ramsey Personal Finance Chapter 1 Post Test Study Guide Rated A+ What is the first foundation? Save a $500 emergency fund As a single adult, you should... Keep managing your money as a priority What are the 5 foundations? A personal financial action plan What is the best way to avoid running out of money too quickly? You can make it a habit to plan and set goals for your money Personal finance is all the financial decisions a(n) ___________must make in order to earn, budget, save, spend, and give money over time Individual or company To gain an understanding of your personal finances, you should know... Where you stand financially, how much income you have, what goals you want to set, and how you'll reach those goals You should always make sure you have a ______. budget An important money principle to consider is that you should _______________ and ________________ your money save; invest Savers have a tendency to be _____ Strict with purchases for only themselves 1) You are either only a natural saver or a natural spender. You cannot have a balance of both 1) false Without any debt, you can be outrageously _____________ cautious After WW1, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit... Increased so rapidly, loan sharks became obsolete 2)Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal. 2) true Making the right choices with your money-managing your money-involves knowing how... Earning, budgeting, saving, spending, and giving affect your money A ______________financial goals takes up to two years to reach short term Personal finance is 20% _________ and 80%_________________ behavior; head knowledge What is the fifth foundation? Build wealth and give Using credit has not always been a socially accepted practice, but it has become... Necessary for life in America A money principle to keep in mind is to live on _________ you make Exactly 20% what you make What does living paycheck to paycheck mean? Living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month's expenses 3) It is possible to pay for college with cash 3) true 4) Avoiding debt can lead to financial freedom