Personal Finance and Wealth Management
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Questions and Answers

What is the recommended percentage of earnings to save according to the text?

  • 10%
  • 30%
  • 20% (correct)
  • 50%

    • Why is it important to avoid impulse buying?

  • Because it can bring in additional value
  • Because it can increase savings
  • Because it can lead to overspending (correct)
  • Because it can help increase income

    • What is one of the benefits of investing in cooperatives?

  • It can lead to financial independence
  • It can help increase savings
  • It can increase income
  • It can bring in additional value to you as a person (correct)

    • What is the recommended strategy for shopping?

    <p>Buy things on sale</p> Signup and view all the answers

    Why is it important to have a retirement plan?

    <p>So you can ensure a future income</p> Signup and view all the answers

    What is the recommended way to increase income and savings?

    <p>By making means to increase income, money and savings</p> Signup and view all the answers

    What is one of the main reasons why people lack financial stability?

    <p>They lack knowledge on how to manage their finances</p> Signup and view all the answers

    What is the key to achieving financial independence?

    <p>Living below your means</p> Signup and view all the answers

    What is the purpose of identifying needs and wants?

    <p>To prioritize spending on essential items</p> Signup and view all the answers

    What is a characteristic of financial literacy?

    <p>The ability to understand how money works</p> Signup and view all the answers

    What is a consequence of not having a financial plan?

    <p>Financial instability</p> Signup and view all the answers

    What is a benefit of prudent use of money?

    <p>Financial stability</p> Signup and view all the answers

    What is the key to achieving financial independence?

    <p>Earning your own keeps and budgeting</p> Signup and view all the answers

    Why is it necessary to start a personal savings program?

    <p>To save for the future and create wealth</p> Signup and view all the answers

    What is the correct formula for calculating net worth?

    <p>Assets - Liabilities = Net Worth</p> Signup and view all the answers

    What is the primary reason for acquiring financing or loans?

    <p>To start or expand a business</p> Signup and view all the answers

    What is the key to increasing wealth?

    <p>Working hard and spending less</p> Signup and view all the answers

    What is the primary reason for knowing your assets and liabilities?

    <p>To calculate your net worth</p> Signup and view all the answers

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