FIVE FUNDAMENTALS TO SUCCESS
Anisa Abdulhussein, Kamy Silva, Jackie Lozano, Sam Gumban
EMERGENCY FUND
- Plan for an emergency to happen
- Murphy's Law
- Anything that can go wrong will go wrong
- Should be kept somewhere that is difficult to access
- Separate from regular account/spending money
- Insurance NOT an investment
EMERGENCY FUND
- Amount grows as you do
- Three-six months worth of your paycheck
- High school students should aim to save $500
How much is enough?
GET OUT OF DEBT
Debt is anything you owe someone else
- Make a budget and stick with it
- Assess spending personality and change habits if needed
- Dave Ramsey advises individuals to be cautious when using credit cards
- Use more cash
- If you want something save up for it
- Sinking Fund
How?
Debt keeps you from achieving financial success
Why?
PAY CASH FOR SCHOOL
- Try to avoid taking out student loans
- Pay for school with "cash"
- Apply for scholarships
- Apply for federal aid
- Use college funds or saved money
Statistics
- 70% of graduates take out loans for their education
- Average student debt
- $37,172
- Takes an average of 21 years to pay back loans for a bachelors degree
PAY CASH FOR YOUR CAR
- Saving and paying with cash can help you avoid unnecessary debt when buying a car
- Average car payments are about $475
- 26,000 car
- Interest rate of about 9.6%
- After four years, the car's value depreciates by 70%
- You end up paying $33,000 for a $26,000 car that ends up only being worth about $6,000
Car Payments
- Buy a cheaper car
- Put $475 in savings
- After 10 months, you have a total of about $4,750 + money that you get from selling your car
- Repeat until you have your dream car
Paying with Cash
BUILD WEALTH AND GIVE
Once building wealth, giving to those in need adds a greater appreciation for money. Being a giver benefits both parties and is a wise way to spend money.