80 10 10 rule finance

Question 1 3 pts

A personal financial plan considers which of the following?

expected future income

spending goals

gifts to others

investment goals

all of the other answers

Flag this Question Question 2 3 pts

Of the following, which step is done earliest when setting the foundation for your financial plan?

set your goals

create a vision for your future

establish your mission statement

identify your values

assess methods for achieving your goals

Flag this Question Question 3 3 pts

If you follow the 80-10-10 rule, how much more will you save per year if your annual income is $45,000 than if you follow the 90-10 rule?

$450

$900

$4,500

$9,000

$0

Flag this Question Question 4 3 pts

Which one of the following defines the term "financial independence"?

passive income exceeds earned income

passive income exceeds expenditures

earned income exceeds spending for needs

earned income exceeds spending for both needs and wants

earned income plus passive income exceeds expenditures

Flag this Question Question 5 3 pts

Lisa invests $100 of every paycheck into her retirement account. Which one of the following terms applies to Lisa's action?

life staging

augmenting income

downshifting

downsizing

dollar cost averaging

Flag this Question Question 6 3 pts

Vision statements:

focus on the next twelve months.

define your current financial situation.

tie into your long-term goals.

should not be influenced by your priorities.

should reflect your strengths and passions.

Flag this Question Question 7 3 pts

Which one of the following would you rate as a goal that best meets the criteria of the SMART principle? Assume constant annual earnings of $56,000.

I want to have $500,000 saved by the time I retire.

I have no savings today but plan to have $1 million saved within the next ten years.

I plan to cut my spending so I can increase my savings.

Starting today, I plan to save $50 a month for the next five years so I can take a cruise.

I plan to save monthly so that I have $200,000 in a retirement account.

Flag this Question Question 8 3 pts

Realistic goals that are sufficiently challenging should be attained:

50 percent of the time.

between 60 and 70 percent of the time.

between 70 and 80 percent of the time.

between 80 and 90 percent of the time.

100 percent of the time.

Flag this Question Question 9 3 pts

Which one of the following statements is correct?

Your attitude towards money has no effect on your level of happiness.

You are in control of your money when your income exceeds your spending.

If you earned $10 million a year you should expect to be twice as happy as you would be earning a blue-collar wage.

If you use your money in a manner that conflicts with your values, it will not affect your level of happiness.

Happiness increases by the same amount for every dollar spent regardless of the level of total spending.

Flag this Question Question 10 3 pts

Which of the following can be used as a means to help you find a career?

internships

Occupational Outlook handbook

college career centers

job shadowing

all of the other answers