Money Matters

Explain how the "drive free" method of buying a car works? So instead of buying a new car you pay yourself 475 car payment for 10 months and you'll have enough to buy a used car and that just keeps multiplying until your rich and you never have a car payment again. Write an "I believe" statement regarding car loans? I believe that car loan are a bad idea and it's going to be really hard to avoid a car loan but if I budget and have discipline then I should be fine

Explain why co-signing a loan is never a good idea? Co signing a loan is saying that you know that this person isn't going to pay the loan back and you are going to end up paying the loan yourself.

Explain what Dave means when he says,"The borrower is slave to the lender" What he means is that once we start buying things on credit we get sucked in to doing this more and more and we get into debt and we can't get out of it so we are just permanently stuck in paying this for the rest of our life.

What have you heard about "building your credit score"? My grandma have given me great advice on how I should build my credit score and how to use my credit card. She says that I shouldn't use my credit card for every purchase but I should use it in an emergency purchase's only and that there is a fine line of using all my credit card balance and not using it at all.

Explain in your own words a zero based budget? A zero based budget to me is when you have a plan a month a head where every dollar you earn in going somewhere or doing something everything has a purpose and it has to equal exactly zero at the end of the month

Why do you think it is so common in America to spend more than you make? The reason this is so common is because or credit cards because when you have a credit card you don't have a sense on how much you are really spending and it may seem good in the beginning but in the end its really bad.

Explain why Dave describes overdrafts as a sign of crisis living? When you overdraft your account you are doing something wrong this means that you do not have your situation under control and this is not good. Crisis living can cause a chain reaction of problems and lead to more stress than before.

1.What do you think is the most challenging when it comes to keeping a monthly budget? I think the most challenging part of a budget is creating one that works and sticking with it. It's a big adjustment to start a budget because you've never had control of your money before. Its a big change in you money habits that's why its so hard to do.

1. Describe in your own words what it means to have a budget. what it means to have a budget is to have plan on where and what you are using your money for, and this gives you control and knowledge on what your money is going to. 

On average, how much money do you spend per week? I probably spend about 25-30 a week sometimes I don't spend any money for weeks which amazes me.  What are your top three expenses? The first expense is Food, sometimes I like to buy food and go out to eat. The second is video games I like to purchase in game purchases for video games because I like them and the last is probably just random purchases I make like if I see something on amazon or in a store and I want it sometimes I buy it. 

1. Why don’t more people save for the future? They don't save for the future because they only focus on what's happening now and what they want now and they don't see that they need to save for their retirement and that's why people are broke when they retire  2. Which reasons can be fixed by having a money plan? If you have a money plan you are prepared for the future and you are ready to start saving and this could help you have a nice life in retirement

-Having an emergency fund helps your wealth because you have something to fall back on if things go south and you don't have a job any more or you car has been totaled and you need to pair for a repair. -They don't have that amount of cash on hand and don't feel like waiting to save up that amount of cash

1. How is saving an exercise of your character? This is an exercise of your character because this shows that you have enough discipline and self control to save and not spend, this really builds your character 

1. Why do you think so many people borrow money for large purchases instead of using a sinking fund? Because they don't have the patience or self control to save up for that long and they just want it now 

1. Explain how having an emergency fund helps protect your wealth. This can protect you wealth because if we create a scenario in which you lost your job and you don't have any money coming in then this emergency fund can protect you from digging into your retirement fund or anything else like that. 

What has kept you from saving in the past? I always see something new that I really want and I don't feel like saving or not buying and just keep saving it I just want to spend it all. Based on what you've learned, how can you change this? I can change this buy making saving important to me and then that would boost my saving or set a savings goal and once I achieve that I can reward my self with a little treat. 

My thoughts have been changed I used to think that rich people would always be rich for ever but there is a lot more at play here. What i learned was that no matter how much money you make you can always be poor or wealthy its just matters on the person and  I dound that very intersting

That credit cars before the 1950 were not a normal thing in everyday life and that nobody ever used them. The new normal is being unhappy and unproductive at work because master card or any credit card company is calling you all the day because you are in debt.The way that credit cards have become apart of our lives in very bad and we need to break bad habits. Credit cars are not good and are a lucrative market and we need to stop

How do you want your financial future to look?  I want my financial future to look really good I want to have at least 200,000 in the bank by the time im 25 and I want to be able to self sustain my wealth

1. What was Dave's biggest lesson when it came to managing money and building wealth? He main lesson was that you are the only one in your life that have total control over your money and that you are the only one able to maintain self control its something that is learned not bought.