The Five Foundations

Steps for Establishing and Maintaining Financial Peace

The First Foundation: Developing an Emergency fund

The first and most essential step in finding financial peace is to expect that bad things will happen, and they will. To prepare yourself for the "rainy days" Of financial life, one must develop an emergency fund, to keep from going into debt when the unexpected occurs. For high school students an emergency fund of $500 is suggested. This fund should be kept seperate from your saving and spending money, as it is for emergency only.

When you turn 18 an emergency fund of $5000 is suggested as you will have different financial struggles.

The Second Foundation: Getting Out of Debt

The second step to financial success is getting out of debt. Do you have a lot of debt? Whether it is credit card debt or student loans, believe it or not, this debt is really dragging you down. Most college students end up paying 6% Interest on their student loans. That may not seem like much, but When you're taking out a loan for %10,000 to $40,000, you can end up paying an extra $600 to $2,400. Debts like this can take a lot of time to pay off, and you're spending extra money that you just didn't have in the first place! Getting out of this debt can help you to save, as you'll have less money to pay periodically and there will be less of a risk of your debt pinning you in a corner and causing even more debt.


Paying cash for your car is the next very important step in wealth building. To keep from going back into debt, you have to pay cash for your car, you may not get the best and newest car right away, but with the use of a sinking fund and buying slightly more and more expensive cars each time, eventually you can save up to get the car you want, without taking out any loans.


The Fourth step to financial Sucess is to Pay Cash for College, Many students get trapped under the weight of student loans and struggle with paying them off YEARS after they get out of college. Your money cant grow if you're still paying off ever growing debts, and student loans are something you dont want to deal with


Once you have no more debts to pay, you have finally become financially stable! this is the time when your money will grow for you, and you will have enough to give to others less fortunate :) Congratulations.

Chastidy Holbach and Dakotah Hartenstein