The Five Foundations

By: Jared Novitzke

1. Save $500 In an Emergency Fund

The first and most imperative thing to do to become financially stable is to save $500 (or 3-6 months for adults) in an emergency fund. This fund should be kept in your bank separate from your normal savings account, and should only be utilized in true emergencies (e.g. job loss, etc.).
Big image

2. Get Out of Debt

Pay off all of your debt. Whether college loans or credit card debt, debt collects interest and can stack up against you in the long run, hurting your ability to grow your wealth.
Big image

3. Pay Cash for Your Car

Do not take out a loan for a car you cannot afford. It is more economical to purchase a less expensive car and to save up for a better car rather than having to pay off a brand new car.
Big image

4. Pay Cash for College

Utilize a sinking fund, saving monthly for the ultimate goal of not taking out any loans to pay for your schooling. Your parents can also help you with this, and may also have a sinking fund of their own set up for you to further your education.
Big image

5. Build Wealth and Give

Continue to save your money, but be generous as well to charitable organizations. Donate your time, talent, and treasure to others who may not have it as good as you do. This will both make you feel good and give someone else a boost in their life.