The Five Foundations

By: Katelin Taylor

The First Foundation

The First foundation is to save a $500 emergency fund. This will prepare you for future emergencies and prevent you from going into debt. You start out with the $500 as a High School student because your emergencies tend to not be as costly as you parent's. As you get older, you add to the fund and prevent the debt emergencies can cost you.

The Second Foundation

The Second foundation is to Get Out of Debt. This Foundation is important because as long as you have debt, you will not be able to save a lot of money. By making paying off debt a priority, you will get out of it faster and have more time to save money for retirement and other things you may want or need.
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The Third Foundation

The Third Foundation is Pay Cash for Your Car. This foundation is important because buying a car with a credit card will most certainly get you into a lot of debt. By saving up the cash to buy it, you will avoid debt as well as learn discipline with saving.
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The Fourth Foundation

The Fourth Foundation is Pay Cash for College. This foundation is important because college is one of the main causes for many people's debt. If you start saving at a young age, you should be able to pay for it. The purpose of this foundation is also to keep you out of debt and help you have more time to save for other things.
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The Fifth Foundation

The Fifth Foundation is to Build Wealth and Give. This Foundation is important because by building wealth, you are able to retire with dignity and give to those in need. It also prevents a lot of stress over money. Having wealth at some point in your life is incredibly helpful. You are able to live comfortably with no debt and retire with money to live and experience the way you'd like to. Helping others with money is also important. You can teach them how to save as well as give them extra money if they happen to be struggling.
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