test 1 stats

What is the average savings rate for the US

3-5%

How many Americans didn’t save anything in 2018?

50%

What percent of Americans are living paycheck to paycheck and are at risk of catastrophe?

60%

What percent of Americans have no emergency savings for unexpected expenses?

26%

How many Americans cannot handle a median medical expense of 1000$ at this moment?

50%

How many American Millennials cannot handle a median medical expense of 1000$ at this moment?

60%

How many social security recipients say its their only source of income?

70%

Examples of assets

car resale

checking account

savings account

life insurance cash value

401K

jewelry

Examples of liabilities

credit cards

mortgages

auto loans

business loans

student loans

How does the rule of 72 do?

You are looking to see how much to invest for how long to double your given amount of money.

How do you calculate the % investment for the amount of time in which you’d like to double your investment? (e.g. I want it done in 25 years)?

72/# of years

How do you calculate the # of years it takes to double the amount of your investment?

72/% you would like to contribute

one budgeting mistake is failing to:

save for expenses before they happen

examples of expenses that need to be saved for before they happen

car maintenance (of several kinds), clothing, gifts, travel, hospital bill

one budgeting mistake includes not saving:

automatically or when your check first comes in

one budgeting mistake can be not having this sort of account:

emergency savings

What sorts of things is emergency savings supposed to cover?

medical expenses, loss of job, major car repairs, major home repairs, unexpected events