Podcast
Questions and Answers
Siegel's Principle 4 states that if you always live below your means,___
Siegel's Principle 4 states that if you always live below your means,___
you will always have money to save and invest
What does Siegel guarantee will happen if you devote one hour a week for 10 years (520 hours) to learning about personal finance?
What does Siegel guarantee will happen if you devote one hour a week for 10 years (520 hours) to learning about personal finance?
you will have earned/saved tens of thousands of dollars through your learning
Average Propensity to Consume is defined as the necessities, comforts, and luxuries enjoyed or desired by an individual or family.
Average Propensity to Consume is defined as the necessities, comforts, and luxuries enjoyed or desired by an individual or family.
False
The SMART GOALS acronym's A stands for ____.
The SMART GOALS acronym's A stands for ____.
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What should be the most important thing according to the video on financial goals?
What should be the most important thing according to the video on financial goals?
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Utility describes the amount of satisfaction received from purchasing/utilizing goods or services.
Utility describes the amount of satisfaction received from purchasing/utilizing goods or services.
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In the video '10 things the rich do that the poor don't', what do the rich focus on?
In the video '10 things the rich do that the poor don't', what do the rich focus on?
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What is MMM's overall strategy?
What is MMM's overall strategy?
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Alexa von Tobel talks about 'the domino effect' regarding financial decisions.
Alexa von Tobel talks about 'the domino effect' regarding financial decisions.
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What will be the 'scorecard' for your financial achievement according to Siegel?
What will be the 'scorecard' for your financial achievement according to Siegel?
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What percentage of Americans live 'paycheck to paycheck'?
What percentage of Americans live 'paycheck to paycheck'?
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Which phrase best sums up the article about worldview responsibility?
Which phrase best sums up the article about worldview responsibility?
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MMM discusses the downsides of commuting.
MMM discusses the downsides of commuting.
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Social media has little effect on potential job or career offers.
Social media has little effect on potential job or career offers.
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Your effective tax rate will always be higher than your marginal tax rate.
Your effective tax rate will always be higher than your marginal tax rate.
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After-tax benefits do lower your tax liability since they are deducted after taxes have been withheld.
After-tax benefits do lower your tax liability since they are deducted after taxes have been withheld.
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Our federal income tax system is ____.
Our federal income tax system is ____.
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It is the employee's responsibility to understand their benefits.
It is the employee's responsibility to understand their benefits.
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Which of these should NOT be the primary focus of your first job experience out of college?
Which of these should NOT be the primary focus of your first job experience out of college?
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Brian Tracy states '____ is one of the great wastes of time in life.'
Brian Tracy states '____ is one of the great wastes of time in life.'
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On your paycheck, net pay is lower than gross pay due to taxes and deductions.
On your paycheck, net pay is lower than gross pay due to taxes and deductions.
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Social Security is made up of all but which of the following?
Social Security is made up of all but which of the following?
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Benefits are equally important; everyone will judge different job opportunities in the same light.
Benefits are equally important; everyone will judge different job opportunities in the same light.
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It is important to put your college education to use and get into your final job to contribute new ideas.
It is important to put your college education to use and get into your final job to contribute new ideas.
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Which of the following is NOT a mandatory employee benefit?
Which of the following is NOT a mandatory employee benefit?
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Your employer may offer additional third-party insurance, and it is always the best option.
Your employer may offer additional third-party insurance, and it is always the best option.
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Study Notes
Key Personal Finance Principles
- Live Below Your Means: Always living below your means ensures money is available for savings and investments.
- Invest in Learning: Spending just one hour per week on personal finance education can lead to savings and earnings in the tens of thousands over a decade.
Important Financial Concepts
- Average Propensity to Consume: Incorrectly defined as relating strictly to necessities; it also includes comforts and luxuries.
- SMART Goals: The acronym includes "A" for Attainable, emphasizing the need for realistic goal-setting in finance.
Debt and Financial Goals
- Paying Down Debt: Considered a top priority for financial health and stability according to financial literature.
- Net Worth Focus: Wealthy individuals concentrate on increasing their net worth and income, differentiating their perspective from others.
Financial Strategies and Mindsets
- Frugality Advocacy: The MMM philosophy promotes reducing expenses significantly and saving a substantial portion of income.
- Generational Financial Impact: Financial choices create a "domino effect," influencing the future financial landscape of families.
American Financial Habits and Statistics
- Living Paycheck to Paycheck: Approximately 61% of Americans experience this financial challenge.
- Perception and Worldview: Individual perspectives shape their beliefs and views of the world, impacting financial decisions.
Employment and Job Benefits
- Focus Beyond Salary: Fresh graduates should prioritize career growth and learning experiences over initial salary.
- Understanding Benefits: Employees are responsible for comprehending their benefits, suggesting a proactive approach to personal finance.
Taxation and Deductions
- Progressive Federal Income Tax System: The U.S. tax system is designed to impose higher rates on those with higher incomes.
- After-Tax Benefits: These benefits are deducted after tax withholding, hence, they do not lower tax liability.
Miscellaneous Financial Insights
- Employee Benefits: Social security does not include unemployment benefits, highlighting the distinction between various support systems.
- Job Suitability: Remaining in a job misaligned with one’s strengths is seen as a waste of time and potential.
Paycheck Understanding
- Net vs. Gross Pay: Net pay is typically lower than gross pay due to taxes and deductions like retirement contributions and health premiums.
Common Misconceptions
- Social Media and Career Opportunities: Contrary to some beliefs, social media can heavily influence job offers.
- Mandatory Benefits: Employers are not required by law to offer retirement plans as part of employee benefits.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on key principles of personal finance based on Siegel's teachings. These flashcards cover essential strategies for saving, investing, and improving your financial literacy. Perfect for exam preparation or self-study.
