Part 1: Bibliographic Entry

Ramsey, Dave. Ramseyclassroom, www.ramseyclasroom.com/?&_ga=2.93660437.944324858.1636929976-1115295487.1636929976#/enrollment/398216.

Part 2: Terminology/Keywords

Credit Cards

Debt

Student Loans

Retirement Plan

Investing

Crisis Living

Budget/Save

Part 3: Précis

This self-study course introduces the topic of personal finance and delves into the history of the credit industry in the United States. The necessity of saving and budgeting is emphasized in the curriculum. This course has taught me how to invest and plan for my retirement. This lesson dispels common credit fallacies and explains what a credit score is and how it works. It also calls attention to the importance of both knowledge and behavior when it comes to managing money. In this course, we examined important events relating to economics and business. It is here where I started to become more aware of how finance can play a significant role in one’s life and livelihood. We delved into the history and growth of the American economy, along with the financial and real estate markets. We also studied the process by which people became financially successful, focusing primarily on Warren Buffet and other business experts. Our discussions also focused on personal finance and how to avoid the pitfalls that plague people’s abilities to acquire wealth and remain financially stable. Overdrafts are a sign of “crisis living” because usually, the individual begins to present characteristics(laziness, sloppiness, negligence) that are unhealthy and deleterious to their ability to suitably manage their checking account. Since you do not maintain the financial capacity to pay for a commercial transaction, this may lead to additional penalty fees (35 dollars) from the bank that need to be repaid; as a consequence, you will be fastened with the liability to pay off debt because you did not retain the financial strength to comply with your financial obligations. You are spending more money than you have. Your initial impression of paying twenty-five dollars, in reality, turns to into a payment of 100 dollars because of the penalty fees that your bank accredits and charges you for going below a balance of zero in your checking account.

Part 4: Reflection

Since enrolling myself in this online course, I have developed a stronger interest in finance and real estate. As a result of what I have learned, I am now more motivated than ever to graduate debt-free and set myself up for financial success in my future career and other endeavors. Being financial literate allows you to be one step closer to eluding poverty and the struggles that come with not having enough money. It’ll stop you from ever falling into the cynical and inescapable cycle of consumer debt. It’s the worst thing that could possibly happen, and it’s prevented millions of people from living their dreams. Spending more than you make has become a prevalent societal practice and norm. Many individuals lack self-esteem and consider purchasing items a necessity to seem and feel more valid and prosperous; if not, we commence to feel inadequate and small. The use of credit cards has made the selling of goods and other luxuries more accessible to acquire; this conclusively leads to a debt-centered life. People fail to realize how expensive consumer debt can be and how sustaining a secured financial state needs a monetary strategy because, without one, economic devastation is a probability. We all know that we need to save, budget, and plan for our retirement, but many of us rather live comfortably in the present. People tend to underestimate how much things can change and the probability of experiencing an emergency where money will be the only solution. It’s just something that is inevitable. Putting that type of expense on a credit card or taking out a loan will make you fall into an almost inescapable way of life since a lot of interest rates are very high, which can sometimes make it difficult to pay off your debt. What I do have to say is that the limiting factor to people’s growth and success is that they’ve grown up in an environment where they’ve been so comfortable that they’ve never felt the need to go the extra mile and break boundaries. Yield a return on your investment and ultimately create a diversified portfolio. By establishing yourself in positions, you’re ultimately setting yourself up for your retirement. Use compound interest to your advantage! By investing at a young age, you allow the power of compound interest to take full effect. People are tricked into believing that taking out student loans is a good idea because it’ll boost their potential to earn a good salary. They are fooled into thinking that it’s their ticket to earning a degree and landing a high-paying career. People often assume that they will be able to pay off their debt once they’ve found a profitable job; however, it is difficult to find a high-paying job right out of college. Our society has been conditioned to believe that student loans are an unavoidable part of life and that they are the only economical method to pay for a college education. Student loans are sometimes referred to as “positive debt” because they are an investment in the future of the student. This isn’t the case at all. You shouldn’t go to college if you cannot afford it. Choose one that is appropriate for your financial situation. The phrase “The borrower is a slave to the lender” exemplifies how individuals who attain debt undergo repercussions that frequently impair their capability to be financially free and accomplish their goals; these individuals owe money to the lender hence making them a slave to finical institutions and the credit card company. They are fastened with the obligation to reimburse their debt, but some possess high-interest rates, which can make it very challenging to pay. As a young adult, the best investment you can make is in yourself. I got myself a job and began to learn the value of money. What I mean by this is that money doesn’t grow from trees; it isn’t something that’s easy to get; you need to work for it. Everyone wants to be financially secure and be the one to ameliorate and refine their family’s economic state, but in order to do so, you’ll need to immerse yourself into the world of personal finance and put in the work to learn different trading strategies.

Part 5: Quotables

“If you will live like no one else later, you can live like no one else.”

“The borrower is a slave to the lender.”

“Buy Now and Pay Later”

“Good debt”