BYB L1U3

What is one of the things you've learned according to the text?

• How to ignore expenses

• How to track finances with a budget

• How to spend without limits

• How to avoid income

What is an example of a long-term goal you could achieve with $1M?

• Buy a home

• Spend it all on luxury items

• Avoid paying bills

• Ignore financial advice

Why is it important to have an emergency fund?

• To buy luxury items

• To cover unexpected expenses

• To invest in stocks

• To pay for vacations

What is a recommended action to reduce discretionary spending?

• Buy everything on sale.

• Ask yourself if saving would be a better choice.

• Avoid all purchases.

• Spend more on credit.

What is a tip for creating mini-goals or habits?

• Spend all your cash immediately.

• Save half of any money received as a gift.

• Avoid setting any financial goals.

• Spend more on weekends.

What does investing in stocks mean?

• You own a small share of a company.

• You have a savings account.

• You are guaranteed profits.

• You avoid all risks.

What is diversification in investing?

• Investing all money in one company

• Investing in a variety of things

• Only investing in bonds

• Only investing in stocks

What is a money market similar to?

• A bond

• A checking account

• A stock

• A cryptocurrency

What is the main advantage of bond returns?

• High risk

• Steady income stream

• High volatility

• No interest payments

What does compound interest earn interest on?

• Only the principal amount

• Only the accumulated interest

• Both the principal and accumulated interest

• Only the initial deposit