The Five Foundations

By: Cheyenne Gunseor and Kaley Ludwig

1. Save a $500 emergency fund

This emergency fund allows you to have money available for any surprise emergency expense. Without having money for emergency expenses you will end up in debt, which is not a good thing. After schooling you will want to build your emergency fund in to a full 3-6 months of expenses. Emergency fund should only be used for emergency expenses and kept in the bank in a separate savings account away from sending money.

2. Get out of debt

You shouldn't use a credit card, because cards are the main reason most people are in debt. To stay out of debt you should use a sinking fund for big purchases, the sinking fund helps you save money and have money for other things.

3. Pay cash for your car

When buying something this big you should only use cash, you should never use credit. You should also carry cash everywhere you go just in case if you need it.

4. Pay cash for college

When paying for college use cash. Also take advantage of all the scholarships that there are to help you save money.

5. Build wealth and give

Discipline is the key ingredient when it comes to wealth building, you will be debt free if you discipline yourself when buying certain things.