2. Step 1
โข Sit down and make a BUDGET
โข Know how much you have coming in and
going out every month
3. Debt is Dumb
โข Credit card companies and banks will rip
you off and feel good about it.
โข Youโll pay interest on purchases you made
years ago.
4. Average Americans
โข Keeping up with the Jonesโs doesnโt make
any sense (the Jonesโs are BROKE!)
โข Buy what you can afford. Afford = pay for.
5. Automobiles
โข Never lease โ its like throwing hundred
dollar bills out the window every week.
โข Donโt buy new โ major hit when you leave
the lot. 5 years later = loss of 40% of
value.
6. Automobiles Cont.
โข Try to have no loan โ work your way up to
a nicer car.
โข Buy practical cars.
7. School Loans
โข Try to pay as you go โ youโll have time to
work at least a part-time job.
โข 6 months after you graduate
interest starts accumulating
on your loans.
8. Home Mortgage (loan)
โข Put at least a 20% down payment โ avoids extra interest.
โข Payments no more than 25% of income.
โข 15 year instead of 30 year.
โข http://www.daveramsey.com/tools/mortgage-calculator/
9. Saving and Investing
โข Continuously save for future purchases. Plan
ahead and pay cash when the time comes.
โข Start saving early for retirement 10 โ 15% of
your income.
โข http://www.daveramsey.com/tools/investing-
calculator/
10. Summary
โข Make more than you spend โ do it on
paper before it happens (budget).
โข Pay cash โ no loans, credit cards.
โข Responsible mortgages.
โข Save money regularly for the short term.
โข Invest money Regularly for the long term.
11. Financial Freedom
โข Not tied down by a job you donโt like.
โข Can give money away in huge amounts.
โข No worries or concerns about you or your
familyโs future.
