Dave Ramsey’s Investment Philosophy
A Character and Leadership
Development Program
Graded Exercise #1
Use Dave’s 7 Baby Steps
Learning
Objectives
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elcome?ectid
=gaw.davera
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=CKKYzMPB
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odsH0AaQ
Describe reasons
for saving and
investing
Explain
Describe how time,
money, and rate of
interest relate to
meeting specific
financial goals
Describe effect of
investing saving
from giving up soda
Describe basic
investment
principles
Describe various
savings and
investments
alternatives
You classify your
investment choices
as income
investment or
growth investment
•
You balance the
diversity of your
portfolio
•
•
Income investment: A type of mutual fund that
emphasizes current income, either on a monthly or
quarterly basis, as opposed to capital appreciation.
Growth investment: A diversified portfolio of stocks
that has capital appreciation as its primary goal, with
little or no dividend payouts.
In finance, diversification means reducing nonsystematic risk by investing in a variety of assets
Dave Ramsey’s Investment Philosophy
A Character and Leadership
Development Program
http://www.daveramsey.com/special
s/welcome?ectid=gaw.daveramseybrand1&gclid=CKKYzMPBk8ICFWI
A7AodsH0AaQ
Graded Exercise #1
Use Dave’s Investing Calculator
Learning
Objectives
Describe reasons
for saving and
investing
Describe how time,
money, and rate of
interest relate to
meeting specific
financial goals
Explain
Describe effect of
investing saving
from giving up soda
Explain
Describe basic
investment
principles
Describe various
savings and
investments
alternatives
You classify your
investment choices
as income
investment or
growth investment
•
You balance the
diversity of your
portfolio
•
•
Income investment: A type of mutual fund that
emphasizes current income, either on a monthly or
quarterly basis, as opposed to capital appreciation.
Growth investment: A diversified portfolio of stocks
that has capital appreciation as its primary goal, with
little or no dividend payouts.
In finance, diversification means reducing nonsystematic risk by investing in a variety of assets
Dave Ramsey’s Investment Philosophy
A Character and Leadership
Development Program
Graded Exercise #1
Use Dave’s 7 Baby Steps
Learning
Objectives
Describe reasons
for saving and
investing
http://www.daver
amsey.com/spe
cials/welcome?e
ctid=gaw.davera
mseybrand1&gclid=C
KKYzMPBk8ICF
WIA7AodsH0Aa
Q
Describe how time,
money, and rate of
interest relate to
meeting specific
financial goals
Describe effect of
investing saving
from giving up soda
Describe basic
investment
principles
Explain
Describe various
savings and
investments
alternatives
You classify your
investment choices
as income
investment or
growth investment
•
You balance the
diversity of your
portfolio
•
•
Income investment: A type of mutual fund that
emphasizes current income, either on a monthly or
quarterly basis, as opposed to capital appreciation.
Growth investment: A diversified portfolio of stocks
that has capital appreciation as its primary goal, with
little or no dividend payouts.
In finance, diversification means reducing nonsystematic risk by investing in a variety of assets
Dave Ramsey’s Investment Philosophy
A Character and Leadership
Development Program
http://www.daveramsey.com/special
s/welcome?ectid=gaw.daveramseybrand1&gclid=CKKYzMPBk8ICFWI
A7AodsH0AaQ
Graded Exercise #1
Use Dave’s Advice
Learning
Objectives
Describe reasons
for saving and
investing
Describe how time,
money, and rate of
interest relate to
meeting specific
financial goals
Describe effect of
investing saving
from giving up soda
Describe basic
investment
principles
Describe various
savings and
investments
alternatives
Explain
You classify your
investment choices
as income
investment or
growth investment
•
You balance the
diversity of your
portfolio
•
•
Income investment: A type of mutual fund that
emphasizes current income, either on a monthly or
quarterly basis, as opposed to capital appreciation.
Growth investment: A diversified portfolio of stocks
that has capital appreciation as its primary goal, with
little or no dividend payouts.
In finance, diversification means reducing nonsystematic risk by investing in a variety of assets
Personal Investment Plan
Graded Exercise #2
A Character and Leadership
Development Program
My Personal Budget
Percent
My realistic
take home
monthly
income
Monthly Budget
Charity
10%
Savings/
Investments
10%
Housing
25%
$375
Utilities
5%
$75
$1,500
10%
$150
Clothing
Medical/
Health
1.
$150
2.
Food
Transportation
Criteria
$150
Forecast
Personal
Savings &
Investments
3.
4.
5.
6.
7%
$105
7.
Personal
Recreation
Debts
- New Car
Insurance
Total
My Investment Plan
A Character and Leadership
Development Program
Personal Investment Plan
Graded Exercise #2
Criteria
My Investment Plan
1. You select at least five
products for your
investment plan
1.
2.
3.
4.
5.
2. You outline your
investment strategy
(amount to invest, how
often, and when to invest)
Give one example:
• $____ = Starting balance
• %___ = Rate of return
• $____ = Monthly contribution
• 3-years = Years plan to contribute
3. You predict the
potential value of your
investments three years
from now
Use above example:
4. You classify for
investment choices as
income investment or
growth investment
See criteria #1, it clearly classifies my investment
choices as:
• Income investment and/or
• Growth investment
5. You balance the
diversity of your
investments
See criteria #1, it clearly demonstrates that I
balance the diversity of my investments
6. Your plan is realistic for
your near-term and
intermediate-term goals
Explain near-term goal:
7. You explain how your
investing plan aligns with
your intermediate-term
and long-term financial
goals
Explain intermediate-term (3-12 months) goal:
$____ How much investment will be worth
Explain intermediate-term goal:
Explain long-term (1-year and beyond) goal: