The Five Foundations

Saving Money

The First Foundation

Save a $500 Emergency Fund

Purpose/Importance:


  • In case of unexpected expenses
  • Emergencies will happen along the way
  • In high school it should be $500, as an adult it should be $5,000
  • Where: in separate savings account at your bank


How to save $500 quickly:


  • Save allowance
  • Limit fancy coffees, vending machine goodies, and fast food
  • Hold an auction
  • Consider tutoring
  • Summer job

The Second Foundation

Get Out of Debt

Purpose/Importance:


  • Not in debt for rest of life
  • Have money for other things
  • No interest on debt
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The Third Foundation

Pay Cash for Your Car

Purpose/Importance:


  • No payments left
  • Able to save and sell to buy a better car in 10 months
  • No possible way to get into debt
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The Fourth Foundation

Pay Cash for College

Purpose/Importance:


  • No payments left
  • No possible way to get into debt
  • Won't have to pay interest on loans

The Fifth Foundation

Build Wealth and Give

Purpose/Importance:

  • Gives you discipline
  • Give back as much as you receive
  • What goes around comes around
  • Time and initial amount of investment
"Discipline yourself to do the things you need to do when you need to do them, and the day will come when you will be able to do the things you want to do when you want to do them." - Zig Ziglar