(RAMSEY CLASSROOM) CHAPTER 3 SAVING MONEY EXAM WRITTEN QUESTIONS AND ANSWERS 2023 (pdf) - Course Sidekick (2024)

Giving, saving, spending - You should budget in this order. compound interest - interest earned on both the principal amount and any interest already earned. compound growth - is an average based on an investment's past performance (because investments don't grow at the same rate all the time). This is a millionaire's best friend. Emergency, large purchases, wealth building - The main reasons for saving your hard-earned money. 3-6 months of living expenses - The standard used to determine how much should be held in an emergency fund. Third Foundation - Pay cash for your car Accounting, Engineers, and Teachers - The top three careers reported among millionaires. Outpacing inflation - In order to outpace inflation when investing, your investments need to have a ----higher rate---- of return than the rate of inflation. Saving Makes Life Easier - While saving money isn't easy at first, it will make your life a lot easier in the future if you make it a habit now. Millionaire - a person whose material wealth is valued at more than a million dollars does not have to make six figures. Accrued Interest - The amount of interest charged on a debt but not yet collected. Giving - One of the main reasons we build wealth. Inflation - a general increase in prices and fall in the purchasing value of money. A certain amount of money today is worth more than the same amount in the future. Murphey's Law - If something can go wrong, it will. Car payments - is you paying for the car, and also paying the loaner interest. You end up paying more for the car. I you buy the car cash, you can end up with a better end. Jake and Blake - Jack ended up with more money in his investment account by the time he retired because he started earlier at 21 and earned more interest on interest as a result; Blake invested more money but started later at 31 which left him with less compound interest.

(RAMSEY CLASSROOM) CHAPTER 3 SAVING MONEY EXAM WRITTEN QUESTIONS AND ANSWERS 2023 (pdf) - Course Sidekick (2024)
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