The Five Foundations

Establishing and Maintaining Financial Peace

1. Save a $500 Emergency Fund

The First Foundation:
An emergency fund is something that helps you to have extra money in case of a medical emergency or any type of emergency.How much money you save in your emergency fund when you are older depends on what your monthly bills total at any given time.When you are in high school you should save up $500.The emergency fund is your first savings priority.It is insurance for when unexpected things happen.An emergency fund allows you to have money available for any surprise expenses.

2. Get Out of Debt

The Second Foundation: to get out of debt you must start by stopping all of the loaning and borrowing and start saving for thing so that you can pay for things in cash. Everyone in debt should want to get out because it's like having a milestone around your neck and you are slowly sinking to the bottom of the ocean.

3. Pay Cash for Your Car

The Third Foundation: You should pay cash for your car so that you don't have to worry about car loans and car payments.When you choose to do payments to pay off your car over four or five years it hinders your ability to pay off debt or save money for that time. With doing payments it allows you to collect interest charges. Depreciation is also a big downer for paying in payments.Depreciation is when you buy a $22,000 car it will only be worth about 6,000 in a couple of years. With paying for your car in cash it allows you to avoid all of these things.

4. Pay Cash for College

The Fourth Foundation: College loans debt is one of the biggest debts in America. Paying cash for your college education allows you to avoid College loan debt. Dave Ramsey says piling up student loans throughout your college career is like keeping a monster locked in a closet. Every year it gets bigger and bigger with the new class books that you would need and a meal plan and money for your dormitory. Paying cash for your college education allows you to ease through college without worrying about debt.

5. Build Wealth and Give

The Fifth Foundation: Once you've achieved wealth using the above steps or any legal way you should considered giving back. Giving back to people and your community is very good because it makes you feel good on the inside. Don't get confused you don't have to give back it depends on your character and whats on the inside of you.

By: Zareina Walker , Karina Gower, Colt McGinniss