By: Jessica Vander Koy & Zachary Bednar
Set up an Emergency Fund
Your emergency fund should be at least $500 for teens and $5,000 for adults. The purpose of an emergency fund is to prepare you for unexpected expenses. Setting up your emergency fund is the first thing that you do when following the five foundations.
Pay Cash for Your Car
By paying cash for your car, you eliminate credit interest and the chance of debt. This is the third step when following the five foundations.
Overall, following the five foundations will help you get your life on the right track, money wise. The five foundations are simple beginners steps that will make a big difference, especially in your bank account. Setting up an emergency fund, getting out of debt, paying cash for your car, paying cash for college, and building wealth and then giving are the key components to successfully living and avoiding any financial problems.