Podcast
Questions and Answers
What is the importance of paying yourself first?
What is the importance of paying yourself first?
- It is important for donating money.
- It is important for spending money.
- It is important for borrowing money.
- It is important for financial freedom. (correct)
True or false:The module is about the importance of spending money.
True or false:The module is about the importance of spending money.
False (A)
What are some common excuses for not saving money?
What are some common excuses for not saving money?
- Having too much money to save and not knowing where to invest.
- Having nothing to save and having too little to make a difference (correct)
- Having too many hobbies and not enough money.
- Having too many bills to pay and not having enough time
True or false: Paying yourself first is not crucial for financial freedom.
True or false: Paying yourself first is not crucial for financial freedom.
How much money can accumulate by saving just $5 a day?
How much money can accumulate by saving just $5 a day?
True or false: Excuses for not saving include having too much to save.
True or false: Excuses for not saving include having too much to save.
What is compound interest?
What is compound interest?
True or false: Saving even $5 a day cannot accumulate and grow rapidly.
True or false: Saving even $5 a day cannot accumulate and grow rapidly.
What is the snowball effect of time and interest on savings?
What is the snowball effect of time and interest on savings?
True or false: Compound interest is like free money earned by investing.
True or false: Compound interest is like free money earned by investing.
How much can investing just $5 a day earn in compound interest by year 20?
How much can investing just $5 a day earn in compound interest by year 20?
True or false: By year 20, investing just $5 a day can earn $93,500 in compound interest.
True or false: By year 20, investing just $5 a day can earn $93,500 in compound interest.
How much can investing $5 a day for 40 years accumulate to, with 92% of it being compound interest?
How much can investing $5 a day for 40 years accumulate to, with 92% of it being compound interest?
True or false: It's important to hold onto cash in a regular savings account to take advantage of compound interest.
True or false: It's important to hold onto cash in a regular savings account to take advantage of compound interest.
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Study Notes
- This module is about the importance of saving money.
- Paying yourself first is crucial for financial freedom.
- Excuses for not saving include having nothing to save and having too little to make a difference.
- Saving even $5 a day can accumulate and grow rapidly.
- Compound interest is like free money earned by investing.
- Snowball effect of time and interest on savings can be seen in pie charts.
- By year 20, investing just $5 a day can earn $93,500 in compound interest.
- Investing $5 a day for 40 years can accumulate to $1,000,000 with 92% of it being compound interest.
- It's important not to hold onto cash in a regular savings account to take advantage of compound interest.
- Peter Mahoney will discuss investing in a later module.
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