How much do you know about saving, spending and investing? Take this short quiz by financial expert Dave Ramsey and find out!
You got it right! Money expert Dave Ramsey recommends the Debt Snowball method: List your debts in order from smallest to largest. Pay minimum payments on all your debts except for the smallest one, and attack that one with intensity! Every extra dollar you can get your hands on should be thrown at the smallest debt until it is gone. Then you attack the second one. Every time you pay off a debt, you add its old minimum payment to your next debt payment. So as the snowball rolls over, it picks up more snow. Get it?
Want to begin your journey to financial peace- follow The Seven Baby Steps. Get out of debt the same way you learned to walk—one step at a time. Dave has taught these principles to millions via radio, books, Financial Peace University, live events and online. Go to daveramsey.com to learn more.
Incorrect. Money expert Dave Ramsey recommends the Debt Snowball method: List your debts in order from smallest to largest. Pay minimum payments on all your debts except for the smallest one, and attack that one with intensity! Every extra dollar you can get your hands on should be thrown at the smallest debt until it is gone. Then you attack the second one. Every time you pay off a debt, you add its old minimum payment to your next debt payment. So as the snowball rolls over, it picks up more snow. Get it?
Want to begin your journey to financial peace- follow The Seven Baby Steps. Get out of debt the same way you learned to walk—one step at a time. Dave has taught these principles to millions via radio, books, Financial Peace University, live events and online. Go to daveramsey.com to learn more.
You got it right! Did you do the math? Ben invested only $16,000. Arthur invested $78,000 and never caught up! Ben came out ahead by over $700,000! Grand total for each: Ben $2,288,996; Arthur $1,532,166. So how did that happen? Starting early is key. Ben put in less money but started 8 years earlier. That's compound interest for you!
Incorrect - Did you do the math? Ben invested only $16,000. Arthur invested $78,000 and never caught up! Ben came out ahead by over $700,000! Grand total for each: Ben $2,288,996; Arthur $1,532,166. So how did that happen? Starting early is key. Ben put in less money but started 8 years earlier. That's compound interest for you!
Correct! Once you're out of debt, you should save 3-6 months worth of expenses. Use this money for emergencies only: incidents that would have a major impact on you and your family. Keep these savings in a money market account. Remember, this stash of money is not an investment, it is insurance you're paying to yourself, a buffer between you and life.
Incorrect. Once you're out of debt, you should save 3-6 months worth of expenses. Use this money for emergencies only: incidents that would have a major impact on you and your family. Keep these savings in a money market account. Remember, this stash of money is not an investment, it is insurance you're paying to yourself, a buffer between you and life.
Congratulations, you got it right! Assuming you have no debt except for the house payment, Dave Ramsey suggests investing 15% of your household income into Roth IRA's and pre-tax retirement plans. Some people choose to invest a small amount, if anything, because they want to get a child through school or pay off the home in a hurry. But the kids' degrees won't feed you at retirement, and if you throw all your money into your mortgage at this point, you'll end up having to sell the house and buy the book 72 Ways to Prepare Alpo and Love It. Bad plan.
Nope, this is incorrect. Assuming you have no debt except for the house payment, Dave suggests investing 15% of your household income into Roth IRA's and pre-tax retirement plans. Some people choose to invest a small amount, if anything, because they want to get a child through school or pay off the home in a hurry. But the kids' degrees won't feed you at retirement, and if you throw all your money into your mortgage at this point, you'll end up having to sell the house and buy the book 72 Ways to Prepare Alpo and Love It. Bad plan.
Correct! The total estimated student-loan debt outstanding is approximately $1 trillion. And the percentage of student-loan borrowers who paid on time without postponing payments or paying late? A mere 37%. In other words, 63% of borrowers had a hard time paying back their loans. That's why it's so crazy that our culture thinks debt is okay or normal.
Dave Ramsey's daughter, Rachel Cruze, is passionate about teaching people how to get through college debt free!
Thinking of attending college or have a kid who's almost ready? Learn more about how to get your degree debt-free by checking out Dave Ramsey's Custom College Guide featuring Rachel Cruze at daveramsey.com/tools/college-guide/
Incorrect. The total estimated student-loan debt outstanding is approximately $1 trillion. And the percentage of student-loan borrowers who paid on time without postponing payments or paying late? A mere 37%. In other words, 63% of borrowers had a hard time paying back their loans. That's why it's so crazy that our culture thinks debt is okay or normal.
Dave Ramsey's daughter, Rachel Cruze, is passionate about teaching people how to get through college debt free!
Thinking of attending college or have a kid who's almost ready? Learn more about how to get your degree debt-free by checking out Dave Ramsey's Custom College Guide featuring Rachel Cruze at daveramsey.com/tools/college-guide/