By: Chase and Kayla
2nd Foundation: Get Out of Debt
Basically, you can not save money when you owe money. Always save your money for large purchases in a sinking fund so you do not create debt. If you already have debt, save up your money to pay the debt off.
3rd Foundation: Pay Cash For Your Car
Large purchases should always be paid for with cash. Always try to save your money in a sinking fund to be able to afford the car you want. Unless you really need to, try to avoid taking out a loan, that way you can avoid going into debt.
4th Foundation: Pay Cash For College
College is another large purchase. This meaning save up as much money as you can to afford to go to the college you want. Try to avoid taking out loans for this purchase also. Students loans can take awhile to pay off which can acquire a lot of debt.
5th Foundation: Build Wealth
To build wealth is very important. If you start young and invest even a small amount of money into the bank, by the time you get older you will have a lot more then you could even think of. The reason this is, is because of interest. The key to saving is the initial amount and the length of time it gains interest.