The Five Foundations

Beginner steps for establishing finacial peace.

Foundation #1

Save a $500 Fund.~ An emergency fund that allows you to have money available for any surprise expenses. Ex. Car breaks down and needs repaired. Ex. Family injury.This would lead to financial success because you'd be able to pay for a surprised expense with money you actually have instead of going into debt.

Foundation #2

Get Out Of Debt.~ A good way to get out of debt is by paying for things in cash. That means to stop using a credit card and borrowing money when you want to purchase something.
Ex. Pay cash the next time you want to buy a new television. Ex. Make sure you have enough money next time you want to buy something. This would lead to financial success because it is one thing less that you would have to worry about, and there is more opportunities for you when you are not struggling with debt.

Foundation #3

Pay Cash For Your Car.~ Be sure to pay for your first car in cash so there are no car payments or debt later.Also try not to borrow money from anyone. Ex. Payments. Spread payments for your car to over four or five years in order to pay off debt and save. Ex. Interest. Pay more than the sticker price. This step helps lead to financial success because it helps avoid future bills and interest from the loans you will have to take out of the bank.

Foundation #4

Pay cash for college.~ Instead of using a student loan, try to pay for college with cash to avoid any future debt. Ex.Plan ahead. Make sure you understand how much it is going to cost for college and how you are going to pay for it. Ex. Cash flow. As time goes by make sure you pay a certain amount toward the bill instead of using credit or debt.This step helps lead to financial success because student loans weigh you down and are one of the biggest reasons people go into it. So, by paying in cash you avoid the debt.

Foundation #5

Build wealth and give.~Building wealth is a big goal in wealth success. you should save money from your emergency fund and for purchases, then you should invest some of your income. Investing will help you in the future when you're ready to retire. Ex. Risk return ratio. This method helps lead to financial success because it helps build relationships with people and if you are ever in money problems you can count on them to help you instead of going to the bank for a loan.