Questions and Answers
What two words are used to describe intentionality?
Sliding vs Deciding
What should you be intentional about saving money for?
Big purchases, retirement, and college
What percent of millionaires intentionally live on less than they make?
94%
What percent of millionaires plan ahead and save for large purchases?
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What percent of millionaires stick to the budgets they create?
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How do living on less than you make, saving for large purchases, and sticking to a budget represent deciding actions?
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What are some additional examples of intentional (deciding) actions that millionaires practice?
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What's the purpose of deciding actions?
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What does driving without a map mean in the context of personal finance?
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What one word describes what it takes to become a millionaire?
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What is one personal takeaway after reading this excerpt?
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Study Notes
Intentionality in Personal Finance
- "Sliding vs Deciding" defines intentionality in financial decisions; sliding implies lack of direction, while deciding emphasizes purposeful actions.
Importance of Saving
- Intentional saving is crucial for significant expenses such as retirement funds, major purchases, and college education.
Living Below Means
- 94% of millionaires consciously live on less than their income, promoting a habit of saving by spending less than they earn.
Planning for Purchases
- 95% of millionaires engage in proactive planning for large purchases, reflecting intentional decision-making in their financial behaviors.
Budget Adherence
- 93% of millionaires adhere to their created budgets, showcasing a commitment to intentional financial planning and management.
Conscious Financial Management
- Actions like living below means, intentional saving, and budgeting represent conscious financial decisions aimed at preventing reckless spending.
Lifestyle Choices of Millionaires
- Millionaires often buy older cars, reside in modest homes, and choose affordable clothing, illustrating a commitment to modest living over societal standards.
Purpose of Deciding Actions
- Deciding actions help manage finances effectively, encouraging awareness and intentionality towards money allocation, which supports wealth accumulation.
Budgeting as a Financial Framework
- A budget functions as a financial road map, providing direction; operating without one is akin to driving aimlessly and relying on luck for financial success.
Necessity of Intention
- Being "intentional" is essential for aspiring millionaires, emphasizing the need for deliberate choices regarding finances, work ethic, and lifestyle.
Personal Reflection
- Individuals can achieve millionaire status through dedication and intentional effort, highlighting the potential for wealth accumulation.
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Description
Explore key concepts from Chapter 3 of Personal Finance with these engaging flashcards. Test your understanding of intentionality in financial decisions, specifically focusing on the terms 'Sliding vs Deciding.' Enhance your financial literacy and prepare for becoming a millionaire.
