THE FIVE FOUNDATIONS

-Miranda & Chelsea

5 key components

1. Save a 500$ emergency fund


2. Get out of debt


3. Pay cash for your car


4. Pay cash for collage


5. Build wealth and give


Do these in order.

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EMERGENCY FUND

Saving a 500$ emergency fund is the first thing your going to do is save for a rainy day. Emergencies will happen so you just have to be prepared for it. Regardless of age emergencies will still happen, but at our age its going to be a different amount then our parents. So we start at 500$
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GET OUT OF DEBT

The second thing you wanna do is get out of debt, cause the last thing you want to do is be stuck in a pile of money. Without debt your stress free
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Pay cash for you car

Instead of borrowing money to make a purchase you want to use a sinking fund approach to these things. Calculate the expected cost times the months it is away. For example if you wanted to get a car by the end of the year and its worth 4,800$ you save 400$ a month.

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Pay cash for college

Start saving when your 15 when you start your first job. start putting away 10-70$ away each paycheck. Wait to go to college till you have the cash upfront.
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Build wealth and give

The last thing you wanna do is save for wealth. Building this will take a while. Its not a hop jump and a skip away.Keep in mind when you put your money away you want to be using interest-bearing accounts. Saving a certain amount of money. In a week, month or even year. Depending on how much you want to grow your wealth.

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