The Five Foundations

By Coby, Angelo, Nolan, Shania

Five Foundations

1. Save a $500 emergency fund
2. Get out of debt
3. Pay for your car
4. Pay cash for college
5. Build wealth and give

First Foundation

$500 in readily available cash to be used only in the event of an emergency.
Why you should save.
  • Unexpected things can happen at any time.
  • Having $500 will help so that those negative events devastate you financially.
  • Without this emergency fund being save, debt will start to come easy.
Make sure money is kept in a bank and will be used for emergencies only.
-Separate savings, away from spending money.
  1. If given allowance, start saving!
  2. Hold a yard sale.
  3. If old enough look for a job.
  4. talk to parent/ guardian about your goal.
  5. Try a tutoring job
  6. During summer find work...
  7. Watch out for ads.
  8. Use skills
  • As you get older try to have three to six months worth of expenses set aside in emergency.

Second Foundation

You need to get out of debt save a lot of money in further future. You can get stuck in debt and repeat this cycle if not knowing what to do.
  • Debt is everywhere

The idea of writing down what you spend is a concept most people find annoying at best and useless at worst. However, this is actually your key to getting out of debt. You're in debt because you spent money you didn't have.

  1. Stop increasing your debt
  2. Record your spending
  3. Categorize your spending
  4. Only use cash
  5. Figure out your debt pay down fund amount

The idea of writing down what you spend is a concept most people find annoying at best and useless at worst.

Third Foundations

  • Pay cash for a new car

You don't wanna do this After decades of easy credit, we’ve been conditioned to think of car loans as a normal part of the car buying process.

-Reasons why to pay cash for a new car

  1. Don't wanna have to pay crazy car payments/ loans

Fourth Foundation

Most people after they get out college they are in debt. It's normal but not acceptable if your trying to be successful though.

  • Pay cash college is benefits you in the future

There is 40 million people in debt after college because of student loans. The average student debt $29,400.

  • Reasons why to pay cash for college
  1. Try to get scholarship for college
  2. Or try get into the army so they can pay for it
  3. So when get out of college you don't pay a dime