{ "packId": "total-money-makeover", "packName": "The Total Money Makeover", "packVersion": "1.0.2", "shortName": "Money Makeover", "icon": "πŸ’΅", "description": "The Total Money Makeover by Dave Ramsey", "author": "Dave Ramsey", "language": "en", "lessons": [ { "id": "lesson-1", "title": "Foundations, Financial Psychology, and the Starter Fund", "order": 1, "studyGuidePath": "/packs/total-money-makeover/guides/foundations-financial-psychology-and-the-starter-fund.md", "sources": [ { "label": "The Total Money Makeover β€” Dave Ramsey" } ], "parts": [ { "id": "part-1", "title": "Financial Denial, Behavior vs. Head Knowledge, and The Money Makeover Premise", "order": 1, "blurb": "Financial Denial, Behavior vs. Head Knowledge, and The Money Makeover Premise", "studyGuideAnchor": "financial-denial-behavior-vs-head-knowledge-and-the-money-makeover-premise", "itemIds": [ "item-tmm-001", "item-tmm-002", "item-tmm-003", "item-tmm-005", "item-tmm-006", "item-tmm-007", "item-tmm-008", 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"tf-d-total-money-makeover-item-tmm-028", "ot-debt-myths-1", "ot-debt-myths-2", "ot-debt-myths-3", "ot-debt-myths-4", "ot-debt-myths-5" ] } ], "objectives": [ { "id": "obj-financial-denial-behavior-vs-head-knowle", "statement": "Explain why personal finance is 80% behavior and 20% head knowledge, and establish the Baby Step 1 $1,000 Starter Emergency Fund.", "demonstrationIds": [ "d-financial-denial-behavior-vs-head-knowle", "d-financial-denial-behavior-vs-head-knowle-applied" ] }, { "id": "obj-debt-myths-consolidation-traps-and-baby", "statement": "Execute Baby Step 2 via the Debt Snowball: list debts smallest to largest balance to build psychological momentum.", "demonstrationIds": [ "d-debt-myths-consolidation-traps-and-baby", "d-debt-myths-consolidation-traps-and-baby-applied" ] } ], "demonstrations": [ { "id": "d-financial-denial-behavior-vs-head-knowle", "label": "Behavioral Finance & Baby Step 1 Fund", "itemIds": [ "item-tmm-001", "item-tmm-007", "item-tmm-011", "item-tmm-005" ], "requiredCorrect": 3 }, { "id": "d-financial-denial-behavior-vs-head-knowle-applied", "label": "Financial Denial & Starter Emergency Rules", "itemIds": [ "item-tmm-010", "item-tmm-014", "item-tmm-002" ], "requiredCorrect": 3 }, { "id": "d-debt-myths-consolidation-traps-and-baby", "label": "Baby Step 2 Debt Snowball Mechanics", "itemIds": [ "item-tmm-017", "item-tmm-020", "item-tmm-029", "item-tmm-019" ], "requiredCorrect": 3 }, { "id": "d-debt-myths-consolidation-traps-and-baby-applied", "label": "Smallest Balance Prioritization & Momentum", "itemIds": [ "item-tmm-026", "item-tmm-018" ], "requiredCorrect": 2 } ], "objectiveTests": [ { "id": "test-financial-denial", "objectiveId": "obj-financial-denial-behavior-vs-head-knowle", "title": "Behavior vs Head Knowledge", "mcqIds": [ "ot-fin-denial-1", "ot-fin-denial-2", "ot-fin-denial-3", "ot-fin-denial-4", "ot-fin-denial-5" ] }, { "id": "test-debt-snowball", "objectiveId": "obj-debt-myths-consolidation-traps-and-baby", "title": "Debt Myths & Baby Step 2", "mcqIds": [ "ot-debt-myths-1", "ot-debt-myths-2", "ot-debt-myths-3", "ot-debt-myths-4", "ot-debt-myths-5" ] } ] }, { "id": "lesson-2", "title": "The Debt Snowball and Emergency Preparedness", "order": 2, "studyGuidePath": "/packs/total-money-makeover/guides/the-debt-snowball-and-emergency-preparedness.md", "sources": [ { "label": "The Total Money Makeover β€” Dave Ramsey" } ], "parts": [ { "id": "part-3", "title": "Baby Step 2 and the Debt Snowball Mechanics", "order": 1, "blurb": "Baby Step 2 and the Debt Snowball Mechanics", "studyGuideAnchor": "baby-step-2-and-the-debt-snowball-mechanics", "itemIds": [ "item-tmm-031", "item-tmm-032", "item-tmm-033", "item-tmm-034", "item-tmm-035", "item-tmm-036", "item-tmm-037", "item-tmm-038", "item-tmm-039", "item-tmm-040", "item-tmm-041", "item-tmm-043", "item-tmm-044", "item-tmm-045", "tf-df-total-money-makeover-item-tmm-034", "tf-df-total-money-makeover-item-tmm-043", "ot-debt-snowball-order", "ot-debt-snowball-tiebreak", "ot-gazelle-not-intensity", "ot-debt-snowball-apply", "ot-debt-snowball-timeframe" ] }, { "id": "part-4", "title": "Baby Step 3: Evicting Murphy with a Fully Funded Emergency Fund", "order": 2, "blurb": "Baby Step 3: Evicting Murphy with a Fully Funded Emergency Fund", "studyGuideAnchor": "baby-step-3-evicting-murphy-with-a-fully-funded-emergency-fund", "itemIds": [ "item-tmm-046", "item-tmm-047", "item-tmm-048", "item-tmm-049", "item-tmm-050", "item-tmm-051", "item-tmm-052", "item-tmm-053", "item-tmm-054", "item-tmm-055", "item-tmm-056", "item-tmm-057", "item-tmm-058", "item-tmm-059", "tf-d-total-money-makeover-item-tmm-046", "tf-df-total-money-makeover-item-tmm-049", "tf-d-total-money-makeover-item-tmm-053", "tf-d-total-money-makeover-item-tmm-057", "ot-babystep3-3month", "ot-babystep3-6month", "ot-fourwalls-not", "ot-babystep3-transmission", "ot-babystep3-storage" ] } ], "objectives": [ { "id": "obj-baby-step-2-and-the-debt-snowball-mechan", "statement": "Establish Baby Step 3 (a fully funded 3-to-6 month emergency fund) and master Zero-Based Budgeting and the Envelope System.", "demonstrationIds": [ "d-baby-step-2-and-the-debt-snowball-mechan", "d-baby-step-2-and-the-debt-snowball-mechan-applied" ] }, { "id": "obj-baby-step-3-evicting-murphy-with-a-fully", "statement": "Structure long-term wealth: allocate 15% to retirement across four growth mutual fund quadrants (Baby Step 4), college (Step 5), and mortgage payoff (Step 6).", "demonstrationIds": [ "d-baby-step-3-evicting-murphy-with-a-fully", "d-baby-step-3-evicting-murphy-with-a-fully-applied" ] } ], "demonstrations": [ { "id": "d-baby-step-2-and-the-debt-snowball-mechan", "label": "Baby Step 3 & Zero-Based Budgeting", "itemIds": [ "item-tmm-032", "item-tmm-036", "item-tmm-041", "item-tmm-037" ], "requiredCorrect": 3 }, { "id": "d-baby-step-2-and-the-debt-snowball-mechan-applied", "label": "The Envelope System & Sinking Funds", "itemIds": [ "item-tmm-044", "item-tmm-031", "item-tmm-034" ], "requiredCorrect": 3 }, { "id": "d-baby-step-3-evicting-murphy-with-a-fully", "label": "Baby Steps 4, 5, and 6 Wealth Pillars", "itemIds": [ "item-tmm-047", "item-tmm-048", "item-tmm-054", "item-tmm-046" ], "requiredCorrect": 3 }, { "id": "d-baby-step-3-evicting-murphy-with-a-fully-applied", "label": "15% Retirement & Mortgage Payoff Strategy", "itemIds": [ "item-tmm-049", "item-tmm-052", "item-tmm-053" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-debt-snowball-mechanics", "objectiveId": "obj-baby-step-2-and-the-debt-snowball-mechan", "title": "Debt Snowball Mechanics", "mcqIds": [ "ot-debt-snowball-order", "ot-debt-snowball-tiebreak", "ot-gazelle-not-intensity", "ot-debt-snowball-apply", "ot-debt-snowball-timeframe" ] }, { "id": "test-baby-step3-emergency-fund", "objectiveId": "obj-baby-step-3-evicting-murphy-with-a-fully", "title": "Baby Step 3 Emergency Fund", "mcqIds": [ "ot-babystep3-3month", "ot-babystep3-6month", "ot-fourwalls-not", "ot-babystep3-transmission", "ot-babystep3-storage" ] } ] }, { "id": "lesson-3", "title": "Budgeting Mastery and Cash Management", "order": 3, "studyGuidePath": "/packs/total-money-makeover/guides/budgeting-mastery-and-cash-management.md", "sources": [ { "label": "The Total Money Makeover β€” Dave Ramsey" } ], "parts": [ { "id": "part-5", "title": "Zero-Based Budgeting and the Envelope System", "order": 1, "blurb": "Zero-Based Budgeting and the Envelope System", "studyGuideAnchor": "zero-based-budgeting-and-the-envelope-system", "itemIds": [ "item-tmm-061", "item-tmm-062", "item-tmm-064", "item-tmm-065", "item-tmm-066", "item-tmm-067", "item-tmm-068", "item-tmm-069", "item-tmm-070", "item-tmm-071", "item-tmm-072", "item-tmm-073", "item-tmm-074", "item-tmm-075", "tf-d-total-money-makeover-item-tmm-062", "tf-df-total-money-makeover-item-tmm-065", "tf-df-total-money-makeover-item-tmm-067", "tf-d-total-money-makeover-item-tmm-071", "ot-zbb-1", "ot-zbb-2", "ot-zbb-3", "ot-zbb-4", "ot-zbb-5" ] }, { "id": "part-6", "title": "Sinking Funds, Irregular Incomes, and Major Purchases", "order": 2, "blurb": "Sinking Funds, Irregular Incomes, and Major Purchases", "studyGuideAnchor": "sinking-funds-irregular-incomes-and-major-purchases", "itemIds": [ "item-tmm-076", "item-tmm-077", "item-tmm-078", "item-tmm-079", "item-tmm-080", "item-tmm-081", "item-tmm-082", "item-tmm-083", "item-tmm-085", "item-tmm-086", "item-tmm-087", "item-tmm-088", "item-tmm-089", "item-tmm-090", "tf-df-total-money-makeover-item-tmm-076", "tf-df-total-money-makeover-item-tmm-078", "tf-df-total-money-makeover-item-tmm-085", "ot-sink-1", "ot-sink-2", "ot-sink-3", "ot-sink-4", "ot-sink-5" ] } ], "objectives": [ { "id": "obj-zero-based-budgeting-and-the-envelope-sy", "statement": "Reach Baby Step 7 (The Pinnacle Point): build wealth, live and give like no one else, and secure proper insurance defense.", "demonstrationIds": [ "d-zero-based-budgeting-and-the-envelope-sy", "d-zero-based-budgeting-and-the-envelope-sy-applied" ] }, { "id": "obj-sinking-funds-irregular-incomes-and-majo", "statement": "Demonstrate a comprehensive understanding of Sinking Funds, Irregular Incomes, and Major Purchases.", "demonstrationIds": [ "d-sinking-funds-irregular-incomes-and-majo", "d-sinking-funds-irregular-incomes-and-majo-applied" ] } ], "demonstrations": [ { "id": "d-zero-based-budgeting-and-the-envelope-sy", "label": "Baby Step 7 Pinnacle Point & Generosity", "itemIds": [ "item-tmm-066", "item-tmm-074", "item-tmm-073", "item-tmm-062" ], "requiredCorrect": 3 }, { "id": "d-zero-based-budgeting-and-the-envelope-sy-applied", "label": "Insurance Defense & Legacy Building", "itemIds": [ "item-tmm-064", "item-tmm-065", "item-tmm-067" ], "requiredCorrect": 3 }, { "id": "d-sinking-funds-irregular-incomes-and-majo", "label": "Sinking Funds, Irregular Incomes, a β€” Core Concepts", "itemIds": [ "item-tmm-082", "item-tmm-086", "item-tmm-083", "item-tmm-088" ], "requiredCorrect": 3 }, { "id": "d-sinking-funds-irregular-incomes-and-majo-applied", "label": "Sinking Funds, Irregular Incomes, a β€” Applied Analysis", "itemIds": [ "item-tmm-076", "item-tmm-078", "item-tmm-079" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-zero-based-budgeting", "objectiveId": "obj-zero-based-budgeting-and-the-envelope-sy", "title": "Zero-Based Budgeting Basics", "mcqIds": [ "ot-zbb-1", "ot-zbb-2", "ot-zbb-3", "ot-zbb-4", "ot-zbb-5" ] }, { "id": "test-sinking-funds", "objectiveId": "obj-sinking-funds-irregular-incomes-and-majo", "title": "Sinking Funds and Irregular Income", "mcqIds": [ "ot-sink-1", "ot-sink-2", "ot-sink-3", "ot-sink-4", "ot-sink-5" ] } ] }, { "id": "lesson-4", "title": "Long-Term Wealth: Retirement, College, and Home", "order": 4, "studyGuidePath": "/packs/total-money-makeover/guides/long-term-wealth-retirement-college-and-home.md", "sources": [ { "label": "The Total Money Makeover β€” Dave Ramsey" } ], "parts": [ { "id": "part-7", "title": "Baby Step 4: 15% Retirement Allocation and Mutual Fund Quadrants", "order": 1, "blurb": "Baby Step 4: 15% Retirement Allocation and Mutual Fund Quadrants", "studyGuideAnchor": "baby-step-4-15-retirement-allocation-and-mutual-fund-quadrants", "itemIds": [ "item-tmm-091", "item-tmm-092", "item-tmm-093", "item-tmm-094", "item-tmm-095", "item-tmm-096", "item-tmm-097", "item-tmm-098", "item-tmm-099", "item-tmm-100", "item-tmm-101", "item-tmm-102", "item-tmm-103", "item-tmm-104", "tf-d-total-money-makeover-item-tmm-093", "tf-d-total-money-makeover-item-tmm-095", "tf-df-total-money-makeover-item-tmm-096", "tf-d-total-money-makeover-item-tmm-097", "tf-df-total-money-makeover-item-tmm-098", "tf-d-total-money-makeover-item-tmm-103", "ot-retirement-allocation-1", "ot-retirement-allocation-2", "ot-retirement-allocation-3", "ot-retirement-allocation-4", "ot-retirement-allocation-5" ] }, { "id": "part-8", "title": "Baby Step 5 and 6: College Funding and Mortgage Freedom", "order": 2, "blurb": "Baby Step 5 and 6: College Funding and Mortgage Freedom", "studyGuideAnchor": "baby-step-5-and-6-college-funding-and-mortgage-freedom", "itemIds": [ "item-tmm-106", "item-tmm-107", "item-tmm-108", "item-tmm-109", "item-tmm-110", "item-tmm-111", "item-tmm-112", "item-tmm-113", "item-tmm-114", "item-tmm-115", "item-tmm-116", "item-tmm-118", "item-tmm-119", "item-tmm-120", "tf-df-total-money-makeover-item-tmm-106", "tf-d-total-money-makeover-item-tmm-107", "tf-df-total-money-makeover-item-tmm-111", "tf-d-total-money-makeover-item-tmm-118", "ot-college-mortgage-1", "ot-college-mortgage-2", "ot-college-mortgage-3", "ot-college-mortgage-4", "ot-college-mortgage-5" ] } ], "objectives": [ { "id": "obj-baby-step-4-15-retirement-allocation-and", "statement": "Demonstrate a comprehensive understanding of 15% Retirement Allocation and Mutual Fund Quadrants.", "demonstrationIds": [ "d-baby-step-4-15-retirement-allocation-and", "d-baby-step-4-15-retirement-allocation-and-applied" ] }, { "id": "obj-baby-step-5-and-6-college-funding-and-mo", "statement": "Demonstrate a comprehensive understanding of College Funding and Mortgage Freedom.", "demonstrationIds": [ "d-baby-step-5-and-6-college-funding-and-mo", "d-baby-step-5-and-6-college-funding-and-mo-applied" ] } ], "demonstrations": [ { "id": "d-baby-step-4-15-retirement-allocation-and", "label": "Baby Step 4: 15% Retirement Allocat β€” Core Concepts", "itemIds": [ "item-tmm-094", "item-tmm-101", "item-tmm-092", "item-tmm-093" ], "requiredCorrect": 3 }, { "id": "d-baby-step-4-15-retirement-allocation-and-applied", "label": "Baby Step 4: 15% Retirement Allocat β€” Applied Analysis", "itemIds": [ "item-tmm-095", "item-tmm-096", "item-tmm-097", "item-tmm-098" ], "requiredCorrect": 3 }, { "id": "d-baby-step-5-and-6-college-funding-and-mo", "label": "Baby Step 5 and 6: College Funding β€” Core Concepts", "itemIds": [ "item-tmm-109", "item-tmm-113", "item-tmm-120", "item-tmm-114" ], "requiredCorrect": 3 }, { "id": "d-baby-step-5-and-6-college-funding-and-mo-applied", "label": "Baby Step 5 and 6: College Funding β€” Applied Analysis", "itemIds": [ "item-tmm-106", "item-tmm-107", "item-tmm-111" ], "requiredCorrect": 3 } ], "objectiveTests": [ { "id": "test-retirement-allocation", "objectiveId": "obj-baby-step-4-15-retirement-allocation-and", "title": "15% Retirement Allocation", "mcqIds": [ "ot-retirement-allocation-1", "ot-retirement-allocation-2", "ot-retirement-allocation-3", "ot-retirement-allocation-4", "ot-retirement-allocation-5" ] }, { "id": "test-college-mortgage", "objectiveId": "obj-baby-step-5-and-6-college-funding-and-mo", "title": "College Funding & Mortgage", "mcqIds": [ "ot-college-mortgage-1", "ot-college-mortgage-2", "ot-college-mortgage-3", "ot-college-mortgage-4", "ot-college-mortgage-5" ] } ] }, { "id": "lesson-5", "title": "Wealth Protection, Radical Generosity, and Pinnacle Point", "order": 5, "studyGuidePath": "/packs/total-money-makeover/guides/wealth-protection-radical-generosity-and-pinnacle-point.md", "sources": [ { "label": "The Total Money Makeover β€” Dave Ramsey" } ], "parts": [ { "id": "part-9", "title": "Essential Insurance Defense and Wealth Protection", "order": 1, "blurb": "Essential Insurance Defense and Wealth Protection", "studyGuideAnchor": "essential-insurance-defense-and-wealth-protection", "itemIds": [ "item-tmm-121", "item-tmm-122", "item-tmm-123", "item-tmm-124", "item-tmm-125", "item-tmm-126", "item-tmm-127", "item-tmm-128", "item-tmm-129", "item-tmm-131", "item-tmm-132", "item-tmm-133", "item-tmm-134", "item-tmm-135", "tf-d-total-money-makeover-item-tmm-121", "tf-d-total-money-makeover-item-tmm-125", "tf-df-total-money-makeover-item-tmm-126", "tf-df-total-money-makeover-item-tmm-135", "ot-insurance-term-multiplier", "ot-insurance-not-seven", "ot-insurance-ltc-age", "ot-insurance-hsa-pairing", "ot-insurance-term-vs-whole" ] }, { "id": "part-10", "title": "Baby Step 7: The Pinnacle Point, Radical Generosity, and Legacy", "order": 2, "blurb": "Baby Step 7: The Pinnacle Point, Radical Generosity, and Legacy", "studyGuideAnchor": "baby-step-7-the-pinnacle-point-radical-generosity-and-legacy", "itemIds": [ "item-tmm-136", "item-tmm-137", "item-tmm-138", "item-tmm-139", "item-tmm-140", "item-tmm-141", "item-tmm-142", "item-tmm-143", "item-tmm-144", "item-tmm-145", "item-tmm-146", "item-tmm-147", "item-tmm-148", "item-tmm-149", "tf-d-total-money-makeover-item-tmm-136", "tf-df-total-money-makeover-item-tmm-139", "tf-df-total-money-makeover-item-tmm-142", "tf-d-total-money-makeover-item-tmm-147", "ot-pinnacle-point-def", "ot-pinnacle-three-purposes", "ot-pinnacle-portfolio-return", "ot-pinnacle-proverbs-verse", "ot-pinnacle-character-before-capital" ] } ], "objectives": [ { "id": "obj-essential-insurance-defense-and-wealth-p", "statement": "Demonstrate a comprehensive understanding of Essential Insurance Defense and Wealth Protection.", "demonstrationIds": [ "d-essential-insurance-defense-and-wealth-p", "d-essential-insurance-defense-and-wealth-p-applied" ] }, { "id": "obj-baby-step-7-the-pinnacle-point-radical-g", "statement": "Demonstrate a comprehensive understanding of The Pinnacle Point, Radical Generosity, and Legacy.", "demonstrationIds": [ "d-baby-step-7-the-pinnacle-point-radical-g", "d-baby-step-7-the-pinnacle-point-radical-g-applied" ] } ], "demonstrations": [ { "id": "d-essential-insurance-defense-and-wealth-p", "label": "Essential Insurance Defense and Wea β€” Core Concepts", "itemIds": [ "item-tmm-124", "item-tmm-129", "item-tmm-132", "item-tmm-127" ], "requiredCorrect": 3 }, { "id": "d-essential-insurance-defense-and-wealth-p-applied", "label": "Essential Insurance Defense and Wea β€” Applied Analysis", "itemIds": [ "item-tmm-133", "item-tmm-121", "item-tmm-123" ], "requiredCorrect": 3 }, { "id": "d-baby-step-7-the-pinnacle-point-radical-g", "label": "Baby Step 7: The Pinnacle Point, Ra β€” Core Concepts", "itemIds": [ "item-tmm-137", "item-tmm-149", "item-tmm-136", "item-tmm-139" ], "requiredCorrect": 3 }, { "id": "d-baby-step-7-the-pinnacle-point-radical-g-applied", "label": "Baby Step 7: The Pinnacle Point, Ra β€” Applied Analysis", "itemIds": [ "item-tmm-141", "item-tmm-142" ], "requiredCorrect": 2 } ], "objectiveTests": [ { "id": "test-essential-insurance-defense", "objectiveId": "obj-essential-insurance-defense-and-wealth-p", "title": "Essential Insurance Defense", "mcqIds": [ "ot-insurance-term-multiplier", "ot-insurance-not-seven", "ot-insurance-ltc-age", "ot-insurance-hsa-pairing", "ot-insurance-term-vs-whole" ] }, { "id": "test-pinnacle-point-legacy", "objectiveId": "obj-baby-step-7-the-pinnacle-point-radical-g", "title": "Pinnacle Point & Legacy", "mcqIds": [ "ot-pinnacle-point-def", "ot-pinnacle-three-purposes", "ot-pinnacle-portfolio-return", "ot-pinnacle-proverbs-verse", "ot-pinnacle-character-before-capital" ] } ] } ], "items": [ { "id": "item-tmm-001", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "behavioral-psychology", "mindset", "financial-literacy" ], "prompt": { "modality": "text", "value": "According to Dave Ramsey, what fundamental ratio defines winning at personal finance?" }, "options": [ { "modality": "text", "value": "90% absolute household gross income level and 10% disciplined monthly budgeting habits", "short": "90% income / 10% budget" }, { "modality": "text", "value": "50% mathematical computation skill and 50% unpredictable macroeconomic timing luck", "short": "50% math / 50% luck" }, { "modality": "text", "value": "80% behavior and 20% head knowledge", "short": "80% behavior / 20% head" }, { "modality": "text", "value": "20% personal behavioral discipline and 80% complex macroeconomic market timing strategies", "short": "20% behavior / 80% timing" } ], "correctIndex": 2, "explanation": "Ramsey argues that personal finance is primarily a behavioral discipline: 80% behavior and only 20% head knowledge.", "uid": "cr1b0e1qsqnss" }, { "id": "item-tmm-002", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "biography", "bankruptcy", "credit-crisis" ], "term": { "modality": "text", "value": "Ramsey's 1988 Bankruptcy" }, "definition": { "modality": "text", "value": "The legal liquidation of Dave Ramsey's $4M leveraged real estate portfolio at age twenty-eight following a $1.2M commercial bank loan recall within ninety days." }, "uid": "1u3jj0fr5ervh" }, { "id": "item-tmm-003", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "real-estate", "leverage", "liquidity-risk" ], "title": "The Peril of Short-Term Leverage", "body": "Building real estate portfolios using 90-day bank debt creates severe liquidity risk when lending institutions call notes during market contractions.", "illustration": { "kind": "photo", "imagePrompt": "A row of suburban houses on a quiet street, each with a real-estate for-sale sign in the yard, natural daylight, documentary editorial style, no readable text, no logos.", "imageSearchTerm": "row of houses for sale", "alt": "A row of houses on a residential street, each with a for-sale sign in the yard.", "credit": "Simon Carey Β· CC BY-SA 2.0", "creditUrl": "https://commons.wikimedia.org/wiki/File:Champions_Row,_Wilbury_Avenue_-_geograph.org.uk_-_148726.jpg", "subject": "A terrace of three attached houses (render and brick) on a residential street, with a green 'FOR SALE β€” Cumbrian Properties' sign clearly planted in the front hedge/yard of one house.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-003.webp" }, "uid": "11fj6g01pzyh0y" }, { "id": "item-tmm-005", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 2" }, "tags": [ "denial", "psychology", "behavior" ], "template": "The primary barrier preventing insolvent individuals from seeking help is ___, where high consumer debt is rationalized as ordinary adult behavior.", "answer": "financial denial", "distractors": [ "market volatility", "income tax bracket", "predatory inflation" ], "explanation": "Financial denial causes people to normalize dangerous consumer debt by comparing themselves to broke peers.", "uid": "1cf7yevrem4nx" }, { "id": "item-tmm-006", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 2" }, "tags": [ "cultural-norms", "debt-culture", "savings" ], "title": "The 'Normal is Broke' Societal Baseline", "body": "In contemporary consumer culture, 'normal' describes living paycheck to paycheck with high non-mortgage debt and less than $1,000 in liquid savings.", "illustration": { "kind": "photo", "imagePrompt": "A worn, empty leather wallet lying open on a kitchen table beside a small stack of paper bills, soft natural light, documentary mood, text illegible, no logos.", "imageSearchTerm": "empty wallet on kitchen table with bills", "alt": "An open, empty wallet resting on a kitchen table beside a small stack of paper bills.", "credit": "Pexels Β· Towfiqu barbhuiya Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/person-holding-an-empty-wallet-8515596/", "subject": "A person's hands holding an open leather wallet that is visibly empty (no cash or cards in the main compartment) against a white t-shirt β€” no table or bills in frame, but the 'empty wallet' idea is honestly and clearly shown.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-006.webp" }, "uid": "jlqmhr1ctlli5" }, { "id": "item-tmm-007", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 2" }, "tags": [ "motivation", "emotional-crisis", "mindset" ], "prompt": { "modality": "text", "value": "What emotional threshold does Dave Ramsey identify as the catalyst for radical financial transformation?" }, "options": [ { "modality": "text", "value": "Consolidating multiple revolving credit card balances into a single lower-interest bank loan", "short": "Consolidating credit balances" }, { "modality": "text", "value": "Becoming completely sick and tired of being sick and tired of debt", "short": "Sick and tired of being broke" }, { "modality": "text", "value": "Reaching an advanced intellectual understanding of compound interest calculations and tables", "short": "Mastering compound tables" }, { "modality": "text", "value": "Receiving a substantial salary promotion or corporate holiday bonus", "short": "Receiving a salary raise" } ], "correctIndex": 1, "explanation": "An emotional crisis of disgustβ€”becoming sick and tired of being sick and tiredβ€”provides the psychological fuel for change.", "uid": "1vpkd8p19wz3nv" }, { "id": "item-tmm-008", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "economics", "behavioral-models", "rationality" ], "aspect": "Core assumption regarding consumer financial decisions", "difference": "Neoclassical models assume rational utility maximization (Homo economicus), whereas the Ramsey model recognizes decisions are driven 80% by emotional behavior and habits.", "title": "Neoclassical Economic Model", "body": "Neoclassical economics assumes people act as rational utility maximizers (\"Homo economicus\"), but Ramsey argues real financial decisions are driven 80% by emotional behavior and habit, not calculation.", "uid": "w12ydjxude25" }, { "id": "item-tmm-009", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "education", "financial-peace", "curriculum" ], "term": { "modality": "text", "value": "Financial Peace University (FPU)" }, "definition": { "modality": "text", "value": "A nine-week personal finance curriculum founded in 1994 by Dave Ramsey that has guided nearly 10 million people in budgeting and debt elimination." }, "uid": "1re5pwz1q8gwhd" }, { "id": "item-tmm-010", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "banking", "liquidity", "insolvency" ], "template": "Dave Ramsey's personal real estate insolvency began when a successor bank called repayment of ___ in commercial notes within 90 days.", "answer": "$1.2 million", "distractors": [ "$10.5 million", "$500,000", "$250,000" ], "explanation": "The sudden ninety-day capital call of $1.2 million on illiquid real estate triggered Ramsey's cascade into bankruptcy.", "uid": "kbzz0y1eiaafk" }, { "id": "item-tmm-011", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 2" }, "tags": [ "income-fallacy", "high-earners", "debt" ], "prompt": { "modality": "text", "value": "Why does a high annual salary fail to protect households from financial distress?" }, "options": [ { "modality": "text", "value": "Income tax rates increase exponentially on high earner brackets across federal and state levels", "short": "High earner tax brackets" }, { "modality": "text", "value": "High earning corporate professionals are strictly restricted from open equity stock markets", "short": "Stock market restrictions" }, { "modality": "text", "value": "Commercial lending institutions refuse conventional mortgage underwriting to corporate staff", "short": "Mortgage underwriting limits" }, { "modality": "text", "value": "Without behavioral discipline, increased income is consumed by debt", "short": "Income consumed by debt" } ], "correctIndex": 3, "explanation": "High income without disciplined spending habits simply leads to larger consumer debt and identical financial fragility.", "uid": "nly5ezsz3njt" }, { "id": "item-tmm-012", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "economic-theory", "homo-economicus", "behavioral-finance" ], "term": { "modality": "text", "value": "Homo Economicus" }, "definition": { "modality": "text", "value": "The theoretical model of humans as perfectly rational, calculating utility maximizers, rejected by Ramsey as unrepresentative of real household behavior." }, "uid": "1weupnahmu9g" }, { "id": "item-tmm-013", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 2" }, "tags": [ "mindset", "responsibility", "steps" ], "steps": [ "Conduct the Mirror Test and take radical ownership of your financial state", "Reject the societal baseline that carrying revolving debt is normal", "Acknowledge that financial distress is 80% behavioral rather than a math deficit", "Commit to structured lifestyle sacrifices and pattern interrupts" ], "goal": "Overcoming Financial Denial", "uid": "ftbado1cma6jq" }, { "id": "item-tmm-014", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "publishing", "history", "book" ], "template": "First published in 2003 by Thomas Nelson, The Total Money Makeover has sold over ___ copies worldwide.", "answer": "five million", "distractors": [ "fifty thousand", "one hundred thousand", "twenty million" ], "explanation": "The Total Money Makeover has sold over 5 million copies and serves as an enduring guide to debt-free wealth building.", "uid": "1ndjyth144z1s7" }, { "id": "item-tmm-015", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 1" }, "tags": [ "rehabilitation", "pattern-interrupt", "momentum" ], "title": "Behavioral Pattern Interrupts in Finance", "body": "Lasting financial transformation requires environmental constraints and visceral pattern interrupts that restrict impulsive consumption.", "uid": "1kaxeq71dslvf1" }, { "id": "item-tmm-016", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "debt-weapon", "income", "wealth-building" ], "title": "The Primary Wealth-Building Tool", "body": "An individual's greatest wealth-building engine is their active monthly income; debt acts as a weapon that destroys monthly cash flow.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a plain sealed paycheck envelope resting on a wooden desk in soft natural light, quiet and orderly mood, no readable text, no logos.", "imageSearchTerm": "sealed pay envelope on wooden desk", "alt": "A sealed pay envelope resting on a wooden desk.", "credit": "Pexels Β· Elena Golovchenko Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/overhead-shot-of-a-fountain-pen-on-a-sealed-envelope-8061477/", "subject": "a sealed kraft-paper envelope with a small white wax seal, a fountain pen laid across it, and a floral postcard tucked behind it, on a light wood-grain surface β€” a plain sealed envelope on a wooden desk, the closest honest match to the alt text", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-016.webp" }, "uid": "1asr7zzi8cqt" }, { "id": "item-tmm-017", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "cosigning", "credit-risk", "family-finance" ], "prompt": { "modality": "text", "value": "What is Dave Ramsey's firm rule regarding cosigning loans for family or friends?" }, "options": [ { "modality": "text", "value": "Cosign only if the primary borrower provides 20% down payment", "short": "Cosign with 20% down" }, { "modality": "text", "value": "Cosign provided the interest rate is locked below the prevailing national market average", "short": "Cosign below market rates" }, { "modality": "text", "value": "Never cosign for any person, for any reason, under any circumstance", "short": "Never cosign, ever" }, { "modality": "text", "value": "Cosign only for immediate siblings purchasing primary residences", "short": "Cosign for siblings, residences" } ], "correctIndex": 2, "explanation": "Ramsey mandates never cosigning because it binds the cosigner to 100% legal liability without asset ownership.", "uid": "1e4u8gw4q79w2" }, { "id": "item-tmm-018", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "car-leasing", "depreciation", "money-factor" ], "term": { "modality": "text", "value": "Automobile Lease" }, "definition": { "modality": "text", "value": "A consumer financing agreement where the lessee pays for a vehicle's steepest depreciation curve plus opaque interest fees, ending with zero equity." }, "uid": "tctc5x1kz98s7" }, { "id": "item-tmm-019", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "plastic-spending", "pain-of-paying", "consumer-behavior" ], "template": "A widely cited Dun & Bradstreet study shows consumers spend ___ more when transacting with plastic cards instead of cash.", "answer": "12% to 18%", "distractors": [ "1% to 2%", "40% to 50%", "0% to 5%" ], "explanation": "Plastic cards numb the brain's pain of paying, driving consumers to spend 12% to 18% more on identical purchases.", "uid": "1pzo4si5s8w5k" }, { "id": "item-tmm-020", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "debt-consolidation", "revolving-debt", "spending-habits" ], "prompt": { "modality": "text", "value": "What percentage of consumers who consolidate credit card debt accumulate new balances within two years?" }, "options": [ { "modality": "text", "value": "Less than 10 percent of disciplined debt consolidators", "short": "Under 10 percent" }, { "modality": "text", "value": "Over 75 percent due to unaddressed spending behaviors", "short": "Over 75 percent" }, { "modality": "text", "value": "Exactly 50 percent based on consumer credit score tiers", "short": "Exactly 50 percent" }, { "modality": "text", "value": "Approximately 25 percent across major banking networks", "short": "About 25 percent" } ], "correctIndex": 1, "explanation": "Over 75% of people who consolidate unsecured debt without behavioral change run balances back up within two years.", "uid": "qp14cjbcqrqx" }, { "id": "item-tmm-022", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 5" }, "tags": [ "social-comparison", "conspicuous-consumption", "joneses" ], "title": "The 'Keeping Up with the Joneses' Delusion", "body": "Buying unnecessary items on credit to impress peers creates financial devastation because the Joneses are statistically leveraged and broke.", "illustration": { "kind": "photo", "imagePrompt": "Two neighboring suburban houses, each with a shiny new car parked in the driveway, bright daylight, wide editorial photo, no readable text, no logos.", "imageSearchTerm": "suburban houses with new cars in driveways", "alt": "Two neighboring suburban houses, each with a new car parked in the driveway.", "credit": "Wikipedia β€” McMansion Β· See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/McMansion", "subject": "Aerial photograph of a dense tract-housing development: rows of near-identical two-story suburban houses, most with a car parked in the driveway (Wikipedia lead image for 'McMansion').", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-022.webp" }, "uid": "ccvu9b1q5b01p" }, { "id": "item-tmm-023", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "baby-step-1", "emergency-fund", "starter-fund" ], "term": { "modality": "text", "value": "Baby Step 1 Starter Emergency Fund" }, "definition": { "modality": "text", "value": "A $1,000 cash reserve saved within thirty days to absorb minor unexpected life emergencies during the debt reduction journey." }, "uid": "1aamlrm1pjaugo" }, { "id": "item-tmm-024", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "murphy-law", "risk-buffer", "proverbs" ], "term": { "modality": "text", "value": "Murphy's Law Defense" }, "definition": { "modality": "text", "value": "Using a liquid starter emergency cash buffer to prevent minor mechanical or medical mishaps from forcing renewed credit borrowing." }, "uid": "bc9lsgbnbeqq" }, { "id": "item-tmm-025", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "starter-fund", "implementation", "separation" ], "steps": [ "Open a separate savings or money market account at a distinct institution", "Decline debit card issuance to eliminate impulse spending friction", "Generate $1,000 within thirty days via garage sales, overtime, and second jobs", "Designate the funds strictly for urgent, unexpected, non-discretionary crises" ], "goal": "Establishing Baby Step 1", "uid": "1jh4s4b1i45c9" }, { "id": "item-tmm-026", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "low-income-tier", "starter-fund", "proportions" ], "template": "For households with annual gross income below $20,000, the Baby Step 1 starter fund target is adjusted to ___.", "answer": "$500", "distractors": [ "$2,500", "$100", "$5,000" ], "explanation": "Lower-income households establish a $500 starter fund before immediately attacking debt in Baby Step 2.", "uid": "i706cpqji9rf" }, { "id": "item-tmm-027", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 4" }, "tags": [ "net-worth", "conspicuous-consumption", "definitions" ], "aspect": "Financial reality vs outward display", "difference": "True wealth is measured by accumulated assets minus liabilities, whereas conspicuous consumption is often a debt-fueled facade masking negative net worth.", "title": "True Net Worth Wealth", "body": "True net worth is assets minus liabilities, but conspicuous consumption is often a debt-fueled facade that masks a negative net worth.", "uid": "zicpos1j7bqou" }, { "id": "item-tmm-028", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "neuroscience", "pain-of-paying", "insula" ], "term": { "modality": "text", "value": "The Pain of Paying" }, "definition": { "modality": "text", "value": "The neural friction activated in the brain's insular cortex when parting with physical currency, which is muted when using plastic cards." }, "uid": "1an09z1i8f9z" }, { "id": "item-tmm-029", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "rewards-myth", "credit-cards", "spending-elasticity" ], "prompt": { "modality": "text", "value": "Why do credit card reward points fail to create meaningful household wealth?" }, "options": [ { "modality": "text", "value": "Credit rating agencies penalize individuals who collect reward points", "short": "Credit bureaus penalize points" }, { "modality": "text", "value": "Increased spending on plastic easily outpaces 1% to 2% cash-back", "short": "Spending outpaces cash-back" }, { "modality": "text", "value": "Credit card rewards and frequent flyer miles are heavily taxed under federal income codes", "short": "High federal tax on rewards" }, { "modality": "text", "value": "Major commercial airlines routinely expire frequent flyer miles within thirty billing days", "short": "Airlines expire miles quickly" } ], "correctIndex": 1, "explanation": "Consumers spend 12% to 18% more with plastic; earning 1% to 2% cash back while spending $150 more results in a net financial loss.", "uid": "1gpex2j1lguzgp" }, { "id": "item-tmm-030", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "heloc", "secured-debt", "foreclosure-risk" ], "title": "The Peril of Home Equity Debt Consolidation", "body": "Consolidating unsecured consumer credit into a home equity loan transfers debt to a secured lien, putting the family residence at risk of foreclosure.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a person's hands signing loan documents at a table with a pen, neutral home setting, serious mood, no readable text, no logos.", "imageSearchTerm": "signing home loan paperwork at table", "alt": "A person signing loan paperwork at a table, pen in hand.", "credit": "Unsplash Β· Scott Graham Β· Unsplash License", "creditUrl": "https://unsplash.com/photos/man-writing-on-paper-OQMZwNd3ThU", "subject": "Close-up of a man's hand holding a pen and signing blank white paper on a plain wooden table, other hand resting on the page β€” a clean, literal match for 'signing paperwork at a table, pen in hand.'", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-030.webp" }, "uid": "1f7uhp8klffj2" }, { "id": "item-tmm-031", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "debt-snowball", "sorting-rule", "algorithm" ], "steps": [ "List all non-mortgage debts in ascending order of balance (smallest to largest)", "Pay minimum monthly payments on every debt except the smallest", "Direct all surplus budget cash flow with gazelle intensity toward the smallest debt", "Roll over the full payment from the cleared debt into the next smallest debt" ], "goal": "Executing the Debt Snowball Algorithm", "uid": "6lyinchopw82" }, { "id": "item-tmm-032", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "minimum-payments", "cash-allocation", "snowball" ], "prompt": { "modality": "text", "value": "Under the Debt Snowball methodology, how are monthly debt payments allocated?" }, "options": [ { "modality": "text", "value": "Pay only debts carrying formal collection notices while deferring all credit cards", "short": "Pay collection notices only" }, { "modality": "text", "value": "Distribute available surplus funds equally across all active non-mortgage debt balances", "short": "Distribute funds, split evenly" }, { "modality": "text", "value": "Pay minimums on all debts while attacking the smallest with all surplus", "short": "Minimums, attack smallest" }, { "modality": "text", "value": "Pay extra cash toward the highest interest debt while pausing small revolving notes", "short": "Attack highest interest note" } ], "correctIndex": 2, "explanation": "Pay minimum contractual payments on all debts except the smallest, which receives 100% of available extra cash.", "uid": "15ajia0bhac02" }, { "id": "item-tmm-033", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "compounding-payment", "rollover", "momentum" ], "title": "The Debt Snowball Compounding Rollover", "body": "When the smallest debt is eliminated, its minimum payment and all surplus cash are combined with the next debt's payment, accelerating payoff velocity.", "illustration": { "kind": "photo", "imagePrompt": "A snowball rolling down a snow-covered hill, visibly growing larger, motion blur suggesting momentum, bright winter daylight, no readable text, no logos.", "imageSearchTerm": "snowball rolling down snowy hill", "alt": "A large snowball rolling down a snowy hill, gathering more snow as it goes.", "credit": "Pexels Β· Sergey Meshkov Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/person-in-black-coat-holding-white-snow-11057601/", "subject": "Close-up of a person's bare hands packing loose snow into a small round snowball, wearing a dark coat and striped scarf, with snow flurries visible in the air; an authentic, unambiguous snowball in a genuine snow setting", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-033.webp" }, "uid": "15l2o2hfa5x5f" }, { "id": "item-tmm-034", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "gazelle-intensity", "proverbs", "austerity" ], "term": { "modality": "text", "value": "Gazelle Intensity" }, "definition": { "modality": "text", "value": "An emergency behavioral posture derived from Proverbs 6:4-5 where an individual attacks debt with radical focus, sacrifice, and speed." }, "uid": "1p4ac717jfxx9" }, { "id": "item-tmm-035", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "snowball-vs-avalanche", "behavioral-finance", "math-vs-psychology" ], "aspect": "Prioritization metric and primary success driver", "difference": "The Snowball prioritizes smallest balances to generate psychological quick wins, whereas the Avalanche prioritizes highest interest rates based on theoretical math.", "title": "Debt Snowball vs. Debt Avalanche", "body": "The Debt Snowball pays off debts smallest balance first to build fast psychological wins, while the Debt Avalanche pays off debts highest interest rate first to minimize total interest paid.", "illustration": { "kind": "photo", "imagePrompt": "An editorial close-up photograph of coin stacks arranged in ascending height from smallest to largest on a plain surface, even studio lighting, no readable text, no logos.", "imageSearchTerm": "coin stacks arranged smallest to largest", "alt": "Several coin stacks arranged in order from smallest to largest.", "credit": "Unsplash Β· Angie J Β· Unsplash License", "creditUrl": "https://unsplash.com/photos/silver-and-gold-round-coins-XrhrDsZML9Q", "subject": "Five coin stacks of cleanly decreasing height arranged left to right (tall silver down to a short copper stack) against a plain dark background β€” a clear graduated size progression matching the card's idea.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-035.webp" }, "uid": "1e1e3bqxpba8s" }, { "id": "item-tmm-036", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "retirement-pause", "401k-match", "cash-focus" ], "prompt": { "modality": "text", "value": "What is Dave Ramsey's directive regarding retirement investing during Baby Step 2?" }, "options": [ { "modality": "text", "value": "Increase Roth IRA contributions to offset non-mortgage consumer debt interest", "short": "Increase Roth IRA funding" }, { "modality": "text", "value": "Temporarily pause all retirement investing to direct 100% of cash to debt", "short": "Pause retirement investing" }, { "modality": "text", "value": "Maintain 401(k) contributions up to the full employer company match percentage", "short": "Maintain company 401k match" }, { "modality": "text", "value": "Borrow against the employer 401(k) plan to pay off high-interest credit card balances", "short": "Borrow against 401k plan" } ], "correctIndex": 1, "explanation": "All retirement contributions (even employer matched funds) must temporarily pause to maximize cash-flow intensity against debt.", "uid": "ej2nng1kux5am" }, { "id": "item-tmm-037", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "timeline", "bs2-duration", "velocity" ], "template": "Baby Step 2 is engineered to be completed within an aggressive target timeframe of ___.", "answer": "18 to 24 months", "distractors": [ "5 to 10 years", "1 to 3 months", "30 to 36 months" ], "explanation": "Baby Step 2 is designed as an intense, temporary sprint taking between 18 and 24 months.", "uid": "jeu7sq1psivrk" }, { "id": "item-tmm-038", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "vehicle-rule", "asset-sale", "ratio" ], "title": "The 50% Vehicle Income Rule", "body": "If the total value of all motorized vehicles in a household exceeds 50% of annual gross income, selling them for inexpensive cash cars accelerates debt freedom.", "illustration": { "kind": "photo", "imagePrompt": "Rows of used cars with price stickers on the windshields at an outdoor dealership lot, daytime, editorial photo, price numbers illegible, no logos.", "imageSearchTerm": "used car dealership lot with price stickers", "alt": "Rows of used cars parked at an outdoor car dealership lot.", "credit": "Coolcaesar Β· CC BY-SA 3.0", "creditUrl": "https://en.wikipedia.org/wiki/Car_dealerships_in_the_United_States", "subject": "An outdoor Toyota/Scion dealership building (Fremont) with about six cars β€” a minivan, sedans, SUVs β€” parked in a row in front, with 'SERVICE' and 'TOYOTA' signage visible; sourced as the lead image of Wikipedia's 'Car dealerships in the United States' article.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-038.webp" }, "uid": "i6gdd5oskf8j" }, { "id": "item-tmm-039", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "debt-avalanche", "interest-rate", "mathematical-ordering" ], "term": { "modality": "text", "value": "Debt Avalanche" }, "definition": { "modality": "text", "value": "A mathematical repayment method that orders debts by descending interest rate; Ramsey argues it produces weaker real-world follow-through than the snowball because interest savings alone rarely sustain motivation." }, "uid": "kiu8537apop1" }, { "id": "item-tmm-040", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "psychology", "self-efficacy", "identity-shift" ], "title": "Identity Transformation Through Quick Wins", "body": "Eliminating small debt balances within 30 to 60 days delivers a fast sense of accomplishment that shifts self-identity from a helpless debtor to an empowered achiever.", "uid": "1d5luqj1mjgn7d" }, { "id": "item-tmm-041", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "tie-breaker", "snowball-rules", "interest-rate" ], "prompt": { "modality": "text", "value": "How should two debts with identical remaining balances be ordered in the Debt Snowball?" }, "options": [ { "modality": "text", "value": "Place the debt from the older financial institution first on the list", "short": "Older institution first" }, { "modality": "text", "value": "Place the debt with the longer remaining repayment term first on the snowball schedule", "short": "Longer term first" }, { "modality": "text", "value": "Place the debt with the lower monthly minimum payment first on the snowball schedule", "short": "Lower minimum payment first" }, { "modality": "text", "value": "Place the debt with the higher interest rate first to break the tie", "short": "Higher interest rate first" } ], "correctIndex": 3, "explanation": "If two debts share an identical principal balance, list the one with the higher interest rate first.", "uid": "qa2smk1xdt3ym" }, { "id": "item-tmm-043", "shape": "definition", "source": { "label": "Kettle, Trudel, Blanchard & HΓ€ubl, \"Repayment Concentration and Consumer Motivation to Get Out of Debt,\" Journal of Consumer Research (2016)" }, "tags": [ "repayment-concentration", "self-efficacy", "academic-study" ], "term": { "modality": "text", "value": "Repayment Concentration" }, "definition": { "modality": "text", "value": "The behavioral economic principle where focusing 100% of surplus capital on eliminating a single debt target maximizes psychological motivation and completion." }, "uid": "bjcmyu1iij0es" }, { "id": "item-tmm-044", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "lifestyle-sacrifice", "austerity", "restaurants" ], "template": "During the gazelle intensity phase of Baby Step 2, Ramsey famously declares you should not see the inside of a restaurant unless you are ___.", "answer": "working there", "distractors": [ "using gift cards", "celebrating birthdays", "traveling for work" ], "explanation": "Extreme lifestyle austerity during Baby Step 2 eliminates restaurant spending to accelerate debt freedom.", "uid": "s80yd31v3f6yd" }, { "id": "item-tmm-045", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 7" }, "tags": [ "proverbs", "scripture", "gazelle" ], "title": "Biblical Origin of Gazelle Intensity", "body": "Proverbs 6:4-5 provides the scriptural foundation for gazelle intensity, comparing debt escape to a gazelle running for its life from a predator.", "illustration": { "kind": "photo", "imagePrompt": "A gazelle sprinting at full speed across an open African savanna, dust kicked up behind it, golden hour light, wildlife photography, no readable text, no logos.", "imageSearchTerm": "gazelle running across savanna", "alt": "A gazelle running at full speed across an open grassy savanna.", "credit": "Wikipedia β€” Thomson's gazelle Β· See Wikimedia Commons", "creditUrl": "https://en.wikipedia.org/wiki/Thomson%27s_gazelle", "subject": "A Thomson's gazelle standing alert in dry golden savanna grass, looking toward the camera (Wikipedia lead image, Amboseli National Park, Kenya) β€” a genuine gazelle in a genuine savanna, but standing still, not running.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-045.webp" }, "uid": "7qyz2tj67uuv" }, { "id": "item-tmm-046", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "baby-step-3", "full-emergency-fund", "cash-reserve" ], "term": { "modality": "text", "value": "Baby Step 3 Fully Funded Emergency Fund" }, "definition": { "modality": "text", "value": "A liquid reserve holding 3 to 6 months of basic household living expenses in a money market account to defend against major crises." }, "uid": "ytof0m1euhfck" }, { "id": "item-tmm-047", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "3-month-fund", "dual-income", "job-security" ], "prompt": { "modality": "text", "value": "For which household profile is a 3-month emergency fund typically sufficient?" }, "options": [ { "modality": "text", "value": "Households managing recurring chronic medical condition bills and prescription copays", "short": "Chronic medical households" }, { "modality": "text", "value": "Dual-income households where both spouses have stable salaries", "short": "Dual-income stable salaries" }, { "modality": "text", "value": "Single commissioned sales reps with volatile monthly revenues and commission structures", "short": "Commissioned sales reps" }, { "modality": "text", "value": "Self-employed small business owners with seasonal independent contractors and suppliers", "short": "Self-employed business owners" } ], "correctIndex": 1, "explanation": "A 3-month fund is appropriate for dual-income households with stable careers in high-demand fields.", "uid": "mixaqc7wiyce" }, { "id": "item-tmm-048", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "6-month-fund", "single-income", "commission" ], "prompt": { "modality": "text", "value": "Why must single-income households and self-employed professionals maintain a full 6-month emergency reserve?" }, "options": [ { "modality": "text", "value": "Money market deposit accounts offer significantly higher interest rates on larger balances", "short": "Higher interest, larger balances" }, { "modality": "text", "value": "IRS tax audits occur significantly more frequently on single income earner households", "short": "IRS tax audit risk" }, { "modality": "text", "value": "Federal banking regulations mandate 6-month reserves on small firms", "short": "Federal banking rules" }, { "modality": "text", "value": "Higher vulnerability to income disruption requires a deeper buffer", "short": "Deeper buffer, income loss" } ], "correctIndex": 3, "explanation": "Single-income households, commissioned workers, and self-employed individuals face higher income volatility, requiring 6 months.", "uid": "4anb78a0fojy" }, { "id": "item-tmm-049", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "money-market", "liquidity", "fdic" ], "term": { "modality": "text", "value": "Money Market Account (MMA)" }, "definition": { "modality": "text", "value": "An FDIC-insured liquid deposit account with check-writing privileges that pays modest interest while keeping principal completely safe." }, "uid": "12cc6r7vye2xt" }, { "id": "item-tmm-050", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "insurance-role", "peace-of-mind", "capital-protection" ], "title": "The Defensive Role of the Emergency Fund", "body": "An emergency fund is an insurance policy designed to protect long-term investments and provide peace of mind, not an investment to generate yield.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of an open umbrella held protectively over a neat stack of cash on a table, calm reassuring mood, no readable text, no logos.", "imageSearchTerm": "open umbrella held over stack of cash", "alt": "An open umbrella held over a stack of cash." }, "uid": "1fe8why57ef2s" }, { "id": "item-tmm-051", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "liquidity-rule", "no-stocks", "capital-preservation" ], "title": "Prohibition of Equity Risk on Emergency Reserves", "body": "Emergency funds must never be invested in stocks, mutual funds, or locked CDs, as market drops during a personal crisis force capital losses.", "uid": "ru4aftudi0ln" }, { "id": "item-tmm-052", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "transition", "milestone", "step-sequence" ], "steps": [ "Complete Baby Step 2 by eliminating 100% of non-mortgage debt", "Redirect the full debt snowball cash flow into liquid money market savings", "Accumulate 3 to 6 months of baseline living expenses (Baby Step 3)", "Officially launch simultaneous execution of Baby Steps 4, 5, and 6" ], "goal": "Transitioning from Debt Defense to Wealth Building", "uid": "s5nzfsdz20hm" }, { "id": "item-tmm-053", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "shock-absorber", "resilience", "buffer" ], "term": { "modality": "text", "value": "Financial Shock Absorber" }, "definition": { "modality": "text", "value": "A substantial liquid cash buffer that absorbs major unexpected life disruptions without forcing a household to incur debt." }, "uid": "1pyirr6w1y12g" }, { "id": "item-tmm-054", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "baseline-expenses", "survival-budget", "sizing" ], "template": "Calculating emergency fund size in Baby Step 3 is based strictly on ___ living expenses rather than discretionary luxury spending.", "answer": "basic household", "distractors": [ "gross investment", "pre-makeover", "projected retirement" ], "explanation": "The 3-to-6-month calculation includes only essential core survival expenses: food, utilities, housing, transportation, and health.", "uid": "khr34zks6xtt" }, { "id": "item-tmm-055", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "replenishment", "pause-investing", "priority" ], "title": "Emergency Fund Replenishment Priority", "body": "If an emergency arises that depletes the reserve, subsequent retirement investing and extra mortgage payments pause until the fund is fully restored.", "uid": "k69dwgre2c1m" }, { "id": "item-tmm-056", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "crisis-to-inconvenience", "peace-of-mind", "murphy" ], "title": "Transforming Catastrophes into Inconveniences", "body": "A fully funded emergency reserve evicts Murphy's Law from the household by turning potential financial crises into minor cash inconveniences.", "uid": "1xly9dfb0lau1" }, { "id": "item-tmm-057", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "fdic-insurance", "bank-safety", "deposit-protection" ], "term": { "modality": "text", "value": "FDIC Insurance Protection" }, "definition": { "modality": "text", "value": "Federal government backing that guarantees bank deposit balances up to statutory limits, ensuring absolute principal security for emergency funds." }, "uid": "qdzj5zhqf51p" }, { "id": "item-tmm-058", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "credit-cards-vs-emergency-fund", "borrowing-fallacy", "interest" ], "aspect": "Resilience during economic emergencies", "difference": "Cash absorbs emergencies cleanly without obligations, whereas borrowing on credit cards compounds crises by creating new high-interest debt.", "title": "Cash Reserve vs. Credit Card in a Crisis", "body": "A fully funded cash reserve absorbs an emergency with a simple withdrawal and no new obligation, while charging the same emergency to a credit card pays for it with new, compounding high-interest debt.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a neat stack of cash next to a single plain credit card on a wooden table, even lighting, no readable text, no logos, no visible card numbers.", "imageSearchTerm": "cash and credit card side by side on table", "alt": "A stack of cash next to a credit card on a table.", "credit": "Pexels Β· Ivan S Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/1-us-dollar-bill-7621351/", "subject": "A fanned stack of US $100 bills standing upright next to three credit cards laid flat on a wooden table against a plain wall β€” clean, matches the alt precisely", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-058.webp" }, "uid": "1s9ijsai4xguo" }, { "id": "item-tmm-059", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "account-separation", "friction", "behavioral-guardrails" ], "steps": [ "House the fully funded emergency reserve at a different banking institution", "Ensure the account has check-writing privileges for genuine emergencies", "Do not link the reserve to everyday checking debit cards or digital wallets", "Replenish any withdrawn funds immediately through monthly budget surpluses" ], "goal": "Safeguarding the Emergency Reserve", "uid": "1aidvyo108wkky" }, { "id": "item-tmm-061", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "budget-definition", "cash-flow", "empowerment" ], "title": "The Purpose of a Cash Flow Budget", "body": "A budget is people telling their money where to go instead of wondering where it went at the end of each month.", "illustration": { "kind": "photo", "imagePrompt": "A person at a kitchen table writing in a notebook budget next to a calculator and pen, warm indoor lighting, documentary style, text illegible, no logos.", "imageSearchTerm": "person writing budget with calculator at table", "alt": "A person writing in a notebook budget at a table, with a calculator nearby.", "credit": "Pexels Β· olia danilevich Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/a-person-writing-on-white-notebook-5466814/", "subject": "Close-up of a hand writing figures into an open grid-paper notebook with a pen while the other hand operates a black calculator on a wood table, with a bit of cash visible at the edge β€” directly matches 'person writing budget with calculator at table.'", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-061.webp" }, "uid": "fbgxy55bpfrb" }, { "id": "item-tmm-062", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "zero-based-budget", "income-outgo", "everydollar" ], "term": { "modality": "text", "value": "Zero-Based Budget" }, "definition": { "modality": "text", "value": "A cash flow plan where every single dollar of net income is allocated across categories so that total income minus total outgo equals exactly zero." }, "uid": "1tghhkffgu9x" }, { "id": "item-tmm-064", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "four-walls-priority", "distress-budget", "crisis-flow" ], "steps": [ "Fund food first with basic nourishing groceries for the family", "Fund essential residential utilities to keep water and power on", "Pay primary shelter costs to prevent immediate homelessness", "Cover basic transportation needs before paying unsecured creditors" ], "goal": "Allocating Cash During Financial Distress", "uid": "ibuh46l91r98" }, { "id": "item-tmm-065", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "cash-envelopes", "paper-currency", "discipline" ], "term": { "modality": "text", "value": "Cash Envelope System" }, "definition": { "modality": "text", "value": "A cash management method where physical currency is withdrawn and divided into labeled envelopes for volatile categories like groceries and dining out." }, "uid": "1bb5vr31ykxq4l" }, { "id": "item-tmm-066", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "envelope-exhaustion", "spending-boundary", "discipline" ], "prompt": { "modality": "text", "value": "What must happen under the Envelope System when physical cash in an envelope is exhausted?" }, "options": [ { "modality": "text", "value": "Borrow cash from long-term retirement accounts without penalty", "short": "Borrow from retirement" }, { "modality": "text", "value": "Major commercial airlines routinely expire frequent flyer miles within thirty billing days", "short": "Use 30-day credit card" }, { "modality": "text", "value": "Transfer digital funds from the emergency reserve into checking", "short": "Transfer emergency reserve" }, { "modality": "text", "value": "Cease spending in that category entirely until next month begins", "short": "Cease category spending" } ], "correctIndex": 3, "explanation": "When an envelope is empty, spending in that category stops completely until the next monthly budget cycle.", "uid": "gxu32y1451qls" }, { "id": "item-tmm-067", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "everydollar", "digital-app", "budget-tool" ], "term": { "modality": "text", "value": "EveryDollar Application" }, "definition": { "modality": "text", "value": "Ramsey Solutions' official digital zero-based budgeting tool engineered to track income, expenses, and Baby Step progress." }, "uid": "aub5vi74a70c" }, { "id": "item-tmm-068", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "neuroscience", "tactile-friction", "cash-spending" ], "title": "Tactile Friction and Impulse Suppression", "body": "Physically handing over paper bills stimulates neural pain receptors, naturally curtailing impulsive spending compared to swiping a card.", "illustration": { "kind": "photo", "imagePrompt": "A close-up of a hand counting paper cash pulled from a plain envelope, warm indoor light, shallow depth of field, no readable text, no logos.", "imageSearchTerm": "hand counting cash from envelope", "alt": "A close-up of a hand counting cash taken out of an envelope.", "credit": "Pexels Β· https://kaboompics.com/ Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/person-wearing-a-sweater-putting-money-inside-an-envelope-5899173/", "subject": "A person's hands pulling a fanned stack of US paper currency out of an open tan/kraft envelope at a wooden desk, laptop and notepad visible.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-068.webp" }, "uid": "1wm4ck41lo29tq" }, { "id": "item-tmm-069", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "budget-meeting", "cadence", "marital-alignment" ], "steps": [ "Schedule a unified budget meeting before the new month starts", "Forecast all net household income expected during the month", "Allocate every dollar across fixed expenses, debts, and envelopes", "Ensure the final calculated balance reaches exactly zero" ], "goal": "Conducting the Monthly Budget Meeting", "uid": "ienn458qhkbb" }, { "id": "item-tmm-070", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "budget-mindset", "freedom-vs-restriction", "philosophy" ], "aspect": "Psychological effect on personal spending freedom", "difference": "Zero-based budgeting provides intentional permission to spend guilt-free within boundaries, whereas deprivation views budgeting as punishment.", "title": "Zero-Based Budgeting", "body": "Zero-based budgeting isn't deprivation β€” it gives intentional permission to spend guilt-free within the boundaries you've planned, while a restrictive mindset treats every dollar spent as something to feel bad about.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a handwritten budget worksheet with columns and a pen resting on it, on a home desk, warm natural light, no readable text, no logos.", "imageSearchTerm": "handwritten budget worksheet and pen on desk", "alt": "A handwritten budget worksheet and pen on a desk.", "credit": "Pexels Β· olia danilevich Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/white-notebook-on-the-table-5466798/", "subject": "a spiral notebook with handwritten monthly figures (July through December) and dollar totals, next to a calculator, cash, coins, and a pen resting on the notebook, on a desk β€” an honest depiction of a handwritten budget-style worksheet and pen", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-070.webp" }, "uid": "wuenpv1swedld" }, { "id": "item-tmm-071", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "blow-money", "personal-allowance", "marital-harmony" ], "term": { "modality": "text", "value": "Blow Money" }, "definition": { "modality": "text", "value": "A designated monthly cash allocation given to each spouse to spend freely on any personal item without consulting or tracking receipts." }, "uid": "emmgo5154g6wf" }, { "id": "item-tmm-072", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "marital-unity", "joint-finances", "transparency" ], "title": "Marital Unity in Cash Flow Planning", "body": "Combining all income into a single unified budget eliminates financial infidelity, aligns goals, and strengthens marital communication.", "illustration": { "kind": "photo", "imagePrompt": "A couple sitting together at a table reviewing paperwork and a laptop, engaged in conversation, warm home lighting, documentary style, text illegible, no logos.", "imageSearchTerm": "couple reviewing finances together at table", "alt": "A couple sitting together at a table, reviewing financial paperwork.", "credit": "Pexels Β· Ron Lach Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/couple-working-together-at-home-9869384/", "subject": "A man and woman seated together at a table in a kitchen, the man holding a blank paper document that the woman is reading, coffee mugs and a laptop nearby, both calmly engaged β€” a clean, literal match for 'couple reviewing financial paperwork at a table.'", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-072.webp" }, "uid": "1mslh9agephkk" }, { "id": "item-tmm-073", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "mastery-timeline", "budget-learning", "habit" ], "template": "Ramsey notes that it typically takes ___ consecutive monthly budget cycles for a household to achieve confidence and operational rhythm.", "answer": "three", "distractors": [ "twelve", "one", "twenty-four" ], "explanation": "It takes about 90 days (three consecutive monthly budgets) for a household to master zero-based budgeting.", "uid": "gewfri24vqz8" }, { "id": "item-tmm-074", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "groceries", "volatile-spending", "envelopes" ], "prompt": { "modality": "text", "value": "Why does grocery spending require strict cash envelope boundaries in most households?" }, "options": [ { "modality": "text", "value": "Supermarkets charge premium processing fees on electronic cards", "short": "Supermarket card fees" }, { "modality": "text", "value": "Federal food stamp regulations restrict checking debit account use", "short": "Federal food stamp rules" }, { "modality": "text", "value": "Grocery store inventory fluctuates wildly based on import tariffs", "short": "Inventory tariff shifts" }, { "modality": "text", "value": "Groceries represent one of the most volatile budget leakage areas", "short": "Volatile budget leakage" } ], "correctIndex": 3, "explanation": "Groceries and dining out are the most volatile consumer spending categories, making cash envelopes essential.", "uid": "1am898s1vgoavi" }, { "id": "item-tmm-075", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "four-walls-food", "groceries", "restaurants" ], "title": "The 'Four Walls' Food Boundary", "body": "Under The Four Walls, food allocation includes only basic, nourishing groceries, strictly excluding restaurant dining, takeout, or luxury food delivery.", "illustration": { "kind": "photo", "imagePrompt": "A grocery cart filled with basic staple groceries like produce, bread, and milk in a supermarket aisle, bright even lighting, no readable text, no logos.", "imageSearchTerm": "grocery cart with basic groceries", "alt": "A grocery cart filled with basic staple foods in a supermarket aisle.", "credit": "Pexels Β· Gustavo Fring Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/a-woman-with-a-shopping-cart-4971954/", "subject": "Close view of a shopping cart filled with fresh produce (pineapple, bananas, kale, cabbage) with a woman behind it looking at her phone, in a store aisle lined with refrigerated cases.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-075.webp" }, "uid": "jtqg21r7dq3" }, { "id": "item-tmm-076", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "sinking-funds", "non-monthly-expenses", "amortization" ], "term": { "modality": "text", "value": "Sinking Fund" }, "definition": { "modality": "text", "value": "A savings method where expected non-monthly expenditures are divided by twelve and accumulated monthly to meet future bills smoothly." }, "uid": "1j4vz7hntq7pj" }, { "id": "item-tmm-077", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "sinking-vs-emergency", "predictable-costs", "cash-buffer" ], "title": "Defending the Emergency Fund with Sinking Funds", "body": "Sinking funds handle predictable non-monthly obligations like auto insurance and holidays, preventing them from draining the emergency reserve.", "illustration": { "kind": "photo", "imagePrompt": "Several glass jars filled with coins lined up on a shelf, soft natural light, minimalist composition, no readable text, no logos.", "imageSearchTerm": "several jars of coins on a shelf", "alt": "Several glass jars filled with coins, lined up on a shelf.", "credit": "Pexels Β· Miguel Á. PadriΓ±Γ‘n Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/coins-inside-jar-585292/", "subject": "Top-down view of an open glass jar filled with pennies, dimes and quarters, with four loose US coins laid out beside it on weathered wood planks", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-077.webp" }, "uid": "15rfycplxz9hn" }, { "id": "item-tmm-078", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "irregular-income", "commission-earners", "priority-list" ], "term": { "modality": "text", "value": "Irregular Income Planning Sheet" }, "definition": { "modality": "text", "value": "A prioritized monthly budgeting tool for commissioned and self-employed workers that funds expenses sequentially as revenue arrives." }, "uid": "10k9mdsnmv5zu" }, { "id": "item-tmm-079", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "irregular-budget-execution", "drawing-the-line", "prioritization" ], "steps": [ "Calculate minimum baseline survival needs covering The Four Walls", "List all remaining debts and expenses in descending priority order", "Fund each listed item sequentially from top to bottom as cash arrives", "Draw a firm line when revenue stops, leaving remaining items unfunded" ], "goal": "Budgeting on Variable Income", "uid": "e4nnkk1owj1tq" }, { "id": "item-tmm-080", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "sinking-fund-vs-emergency-fund", "predictable-vs-unexpected" ], "aspect": "Type of expense and predictability", "difference": "Sinking funds cover planned, predictable non-monthly bills (e.g. Christmas, taxes), whereas emergency funds cover unforeseen emergencies (e.g. job loss).", "title": "Sinking Fund Account", "body": "A sinking fund covers planned, predictable non-monthly bills like Christmas or property taxes, while the emergency fund stays reserved for true unforeseen crises like a job loss.", "uid": "16qabkzg3zpgx" }, { "id": "item-tmm-081", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "car-replacement", "cash-cars", "sinking-fund" ], "title": "The Car Replacement Sinking Fund", "body": "Building a car replacement sinking fund allows buying reliable used vehicles for cash, bypassing debt and letting previous owners take the depreciation hit.", "illustration": { "kind": "photo", "imagePrompt": "Close-up of one hand handing over cash while another hand offers a set of car keys, in front of a parked car, daylight, documentary style, text illegible, no logos.", "imageSearchTerm": "hand exchanging cash for used car keys", "alt": "A close-up of hands exchanging cash for a set of car keys.", "credit": "Pexels Β· Баша Алалыкин Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/car-keys-and-canculator-on-the-photo-of-money-calculate-the-cost-of-a-car-trip-16827968/", "subject": "A flat-lay of scattered US dollar bills, a handheld calculator, and a black automotive remote key fob (visible lock/unlock/car-horn buttons) β€” no hands and no exchange action, but cash and a car key are both genuinely present.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-081.webp" }, "uid": "1sl944717m2o8d" }, { "id": "item-tmm-082", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "irregular-income-myth", "freelancers", "cash-flow" ], "prompt": { "modality": "text", "value": "How can commissioned workers and freelancers budget effectively despite irregular monthly income?" }, "options": [ { "modality": "text", "value": "List all expenses in descending priority order and fund top to bottom", "short": "Prioritize, fund top-down" }, { "modality": "text", "value": "Maintain revolving credit lines to smooth out lower earning months", "short": "Use revolving credit lines" }, { "modality": "text", "value": "Average annual income and borrow against future anticipated deals", "short": "Borrow against future deals" }, { "modality": "text", "value": "Delay paying all tax obligations until profitable quarters arrive", "short": "Delay taxes, wait for profits" } ], "correctIndex": 0, "explanation": "Variable earners prioritize expenses from Four Walls downward and fund items sequentially as income arrives.", "uid": "1qjqd1c1x3gn6q" }, { "id": "item-tmm-083", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "christmas-budget", "holiday-planning", "annualization" ], "template": "Ramsey teaches that holiday spending should be planned in January as a sinking fund by saving ___ of the estimated cost monthly.", "answer": "one-twelfth", "distractors": [ "one-half", "one-fourth", "all" ], "explanation": "Dividing annual holiday spending by 12 and saving monthly eliminates Christmas debt entirely.", "uid": "1xgkzbh1gf2ov" }, { "id": "item-tmm-085", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "cash-discount", "negotiation", "retail-power" ], "term": { "modality": "text", "value": "Cash Discount Strategy" }, "definition": { "modality": "text", "value": "A consumer negotiation technique using physical hundred-dollar bills to secure price concessions on appliances, furniture, and cars." }, "uid": "1ef6mf1v10m7" }, { "id": "item-tmm-086", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "retail-financing", "appliance-debt", "interest-traps" ], "prompt": { "modality": "text", "value": "Why does Dave Ramsey warn against zero percent retail financing on major home appliances?" }, "options": [ { "modality": "text", "value": "Appliance manufacturers void warranties on financed retail sales", "short": "Financing voids warranties" }, { "modality": "text", "value": "State retail taxes double when purchasing goods on credit plans", "short": "State retail tax increases" }, { "modality": "text", "value": "Retroactive back-interest penalties apply if balances are not cleared", "short": "Retroactive interest traps" }, { "modality": "text", "value": "Credit bureaus automatically downgrade accounts with store financing", "short": "Credit rating downgrades" } ], "correctIndex": 2, "explanation": "Store financing contracts carry retroactive interest penalties that trigger if the balance is not paid within the promotion.", "uid": "1665dgm1cq9rj8" }, { "id": "item-tmm-087", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "business-accounts", "commingling", "sole-proprietors" ], "title": "Strict Business Account Separation", "body": "Independent business owners must maintain distinct business and personal bank accounts to prevent commingling and preserve tax clarity.", "illustration": { "kind": "photo", "imagePrompt": "A small business owner sitting at a desk reviewing financial paperwork and a laptop, focused expression, natural office light, text illegible, no logos.", "imageSearchTerm": "small business owner reviewing paperwork at desk", "alt": "A small business owner reviewing paperwork at a desk.", "credit": "Pexels Β· cottonbro studio Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/white-papers-on-the-table-8369207/", "subject": "A man in a grey business suit and tie standing/seated at a wooden desk, holding a pen over a stack of papers, with a white coffee mug and stacked notebooks/binders beside him.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-087.webp" }, "uid": "1qtnwg7mflf1h" }, { "id": "item-tmm-088", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 3" }, "tags": [ "depreciation", "new-cars", "value-loss" ], "template": "A brand-new automobile loses approximately ___ of its total purchase value to depreciation during its first three years.", "answer": "40% to 50%", "distractors": [ "5% to 10%", "80% to 90%", "0% to 2%" ], "explanation": "New cars experience steep depreciation, typically shedding 40% to 50% of their value in the first thirty-six months.", "uid": "f1fgd5w358jv" }, { "id": "item-tmm-089", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "survival-baseline", "irregular-income", "four-walls" ], "title": "The Survival Baseline Budget", "body": "The starting point for irregular income planning is calculating the survival baseline covering exclusively The Four Walls and essential debt minimums.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a stack of household bills and a calculator on a kitchen table, morning light, practical everyday mood, no readable text, no logos.", "imageSearchTerm": "bills and calculator on kitchen table", "alt": "A stack of bills and a calculator on a kitchen table.", "credit": "Pexels Β· https://kaboompics.com/ Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/person-holding-receipts-and-using-a-calculator-7680736/", "subject": "A close-up of hands holding orange and white receipts atop a stack of papers next to a pink calculator on a light-colored table β€” bills/receipts and a calculator together, the clearest match to the alt text.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-089.webp" }, "uid": "1d478wh1bdt0r" }, { "id": "item-tmm-090", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 6" }, "tags": [ "peace-of-mind", "cash-flow-control", "serenity" ], "title": "Seasonal Serenity Through Sinking Funds", "body": "Planning ahead with monthly sinking funds converts unpredictable annual spikes into level contributions, eliminating financial panic.", "uid": "15l6ina1rtvs04" }, { "id": "item-tmm-091", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "baby-step-4", "15-percent", "retirement-benchmark" ], "title": "The 15% Retirement Benchmark", "body": "Baby Step 4 mandates investing exactly 15% of annual gross household income into tax-advantaged growth retirement accounts.", "illustration": { "kind": "photo", "imagePrompt": "A middle-aged couple sitting at a table reviewing retirement account paperwork together, warm home lighting, documentary style, text illegible, no logos.", "imageSearchTerm": "couple reviewing retirement account documents", "alt": "A couple sitting at a table together, reviewing retirement account paperwork.", "credit": "Pexels Β· Kampus Production Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/a-happy-elderly-couple-holding-a-document-8441854/", "subject": "Stock photo of two smiling senior women embracing at a desk with an open laptop, together holding and looking at a printed paper document β€” a warm, clear 'two people reviewing paperwork together at a desk' scene", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-091.webp" }, "uid": "qk3905ajni93" }, { "id": "item-tmm-092", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "waterfall", "401k-match", "roth-ira" ], "steps": [ "Contribute to an employer 401(k), 403(b), or TSP up to the full company match", "Fully fund a Roth IRA for the worker and spouse up to statutory annual limits", "Return to the employer 401(k) or an HSA to complete the full 15% allocation", "Invest across four diversified quadrants of growth stock mutual funds" ], "goal": "The Retirement Investment Waterfall", "uid": "16gokryg2xwak" }, { "id": "item-tmm-093", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "roth-ira", "tax-free-growth", "after-tax" ], "term": { "modality": "text", "value": "Roth IRA" }, "definition": { "modality": "text", "value": "An individual retirement account funded with after-tax dollars that compounds 100% tax-free and allows completely tax-free withdrawals in retirement." }, "uid": "geyiodylpefz" }, { "id": "item-tmm-094", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "4-quadrants", "mutual-funds", "25-percent-allocation" ], "prompt": { "modality": "text", "value": "How does Dave Ramsey structure equity mutual fund allocations in Baby Step 4?" }, "options": [ { "modality": "text", "value": "50% in physical gold bullion and 50% in blue-chip index stocks", "short": "50% gold / 50% blue-chip" }, { "modality": "text", "value": "100% in domestic high-dividend corporate bonds and treasury bills", "short": "100% in treasury bonds" }, { "modality": "text", "value": "70% in individual tech equities and 30% in real estate trusts", "short": "70% tech / 30% REITs" }, { "modality": "text", "value": "Divided equally with 25% in each of four distinct growth fund types", "short": "25% in 4 quadrants" } ], "correctIndex": 3, "explanation": "Ramsey recommends allocating 25% each across Growth & Income, Growth, Aggressive Growth, and International mutual funds.", "uid": "1p83l7r13vjwd" }, { "id": "item-tmm-095", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "growth-and-income", "large-cap", "blue-chip" ], "term": { "modality": "text", "value": "Growth and Income Funds (Large Cap)" }, "definition": { "modality": "text", "value": "Mutual funds investing in established, blue-chip large-capitalization companies providing portfolio stability and dividend yields." }, "uid": "g0jhc11ortgrn" }, { "id": "item-tmm-096", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "growth-funds", "mid-cap", "expansion" ], "term": { "modality": "text", "value": "Growth Funds (Mid Cap)" }, "definition": { "modality": "text", "value": "Mutual funds investing in medium-sized corporations experiencing robust commercial expansion and solid capital appreciation." }, "uid": "1z01r5d1y2p2jn" }, { "id": "item-tmm-097", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "aggressive-growth", "small-cap", "high-beta" ], "term": { "modality": "text", "value": "Aggressive Growth Funds (Small Cap)" }, "definition": { "modality": "text", "value": "Mutual funds investing in small-cap enterprises, dynamic startups, and emerging sectors with higher market volatility and growth potential." }, "uid": "1cnaw7h9ehi1r" }, { "id": "item-tmm-098", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "international-funds", "overseas", "global-diversification" ], "term": { "modality": "text", "value": "International Funds (Global / Overseas)" }, "definition": { "modality": "text", "value": "Mutual funds investing in major foreign enterprises outside the United States, providing geographical and currency diversification." }, "uid": "1cjc24719uzrs5" }, { "id": "item-tmm-099", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "roth-vs-traditional", "taxation", "retirement" ], "aspect": "Tax timing and withdrawal treatment", "difference": "Roth IRAs use after-tax contributions that grow and withdraw 100% tax-free in retirement, whereas Traditional IRAs use pre-tax dollars taxed upon withdrawal.", "title": "Roth IRA", "body": "Roth IRAs use after-tax contributions that grow and are withdrawn 100% tax-free in retirement. Traditional IRAs use pre-tax dollars that are taxed upon withdrawal.", "uid": "1sajyfo141x012" }, { "id": "item-tmm-100", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "no-stock-picking", "diversification", "mutual-funds" ], "title": "Rejection of Speculative Asset Picking", "body": "Ramsey strictly advises against individual stock picking, bond funds, cryptocurrency, gold, or annuities in favor of broad mutual funds.", "uid": "6c1h0a1y8ya7k" }, { "id": "item-tmm-101", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "track-record", "fund-selection", "10-year-history" ], "template": "When selecting growth mutual funds, Ramsey advises choosing funds with a minimum ___ history of matching or beating market indices.", "answer": "ten-year", "distractors": [ "one-year", "thirty-year", "six-month" ], "explanation": "A ten-year track record ensures a fund manager has navigated multiple market cycles and corrections successfully.", "uid": "1v4qxln1wx0d2p" }, { "id": "item-tmm-102", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "15-percent-cap", "balance", "college-mortgage" ], "title": "The Strategic Reason for the 15% Benchmark", "body": "Investing exactly 15% generates substantial compound retirement wealth while leaving surplus cash flow to fund college (BS5) and prepay mortgages (BS6).", "uid": "q1qtkm1pak9n8" }, { "id": "item-tmm-103", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "smartvestor-pro", "financial-advisor", "guidance" ], "term": { "modality": "text", "value": "SmartVestor Pro Network" }, "definition": { "modality": "text", "value": "A network of vetted financial advisors endorsed by Ramsey Solutions who coach individuals on mutual fund investing and portfolio maintenance." }, "uid": "1erd1qf1kefzyd" }, { "id": "item-tmm-104", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 9" }, "tags": [ "compound-growth", "wealth-creation", "long-term" ], "title": "The Power of Compound Equity Growth", "body": "Steady long-term investing in diversified growth stock mutual funds over 20 to 30 years harnesses compound interest to build generational wealth.", "illustration": { "kind": "photo", "imagePrompt": "A row of coin stacks arranged from shortest to tallest suggesting growth over time, shallow depth of field, studio lighting, no readable text, no logos.", "imageSearchTerm": "increasing stacks of coins in a row", "alt": "A row of coin stacks, each one taller than the last.", "credit": "Pexels Β· RDNE Stock project Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/stacks-of-coins-8369695/", "subject": "A photograph of six distinct novelty coin stacks (alternating silver and gold, stamped with a currency-style symbol) of varying heights arranged in a row on a dark wood table, plants and cups blurred behind.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-104.webp" }, "uid": "d6z5wp1d7ounf" }, { "id": "item-tmm-106", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 10" }, "tags": [ "esa-coverdell", "college-savings", "tax-free" ], "term": { "modality": "text", "value": "Education Savings Account (ESA / Coverdell)" }, "definition": { "modality": "text", "value": "A tax-advantaged account allowing after-tax contributions to grow completely tax-free and withdraw tax-free for qualified education costs." }, "uid": "toaaxvrzzp15" }, { "id": "item-tmm-107", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 10" }, "tags": [ "529-plan", "state-college-savings", "higher-limits" ], "term": { "modality": "text", "value": "529 College Savings Plan" }, "definition": { "modality": "text", "value": "A state-sponsored tax-advantaged college savings plan recommended when household income exceeds ESA eligibility limits." }, "uid": "o5aai8yv56qa" }, { "id": "item-tmm-108", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 10" }, "tags": [ "student-loan-disease", "debt-free-degree", "education" ], "title": "The Student Loan Economic Disease", "body": "Student loan debt is an economic disease that cripples young graduates; completing higher education without borrowing breaks the debt cycle.", "illustration": { "imageSearchTerm": "The Student Loan Economic Disease", "imagePrompt": "The Student Loan Economic Disease: Student loan debt is an economic disease that cripples young graduates; completing higher education without borrowing breaks the debt cycle.", "alt": "The Student Loan Economic Disease.", "credit": "Unsplash Β· Annie Spratt Β· Unsplash License", "creditUrl": "https://unsplash.com/photos/a-young-man-wearing-a-graduation-gown-and-a-tie-QzFjAhRBgd8", "subject": "a young man in a black graduation 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"modality": "text", "value": "Part-time student employment earnings and academic scholarship grants", "short": "Work earnings, plus grants" } ], "correctIndex": 0, "explanation": "Ramsey condemns using life insurance, savings bonds, or UTMA accounts for college due to high fees, poor returns, and loss of control.", "uid": "ifayg8q76bfu" }, { "id": "item-tmm-110", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "baby-step-6", "mortgage-freedom", "early-payoff" ], "title": "Baby Step 6: Early Mortgage Payoff", "body": "Baby Step 6 directs all remaining surplus monthly cash flow toward prepaying principal on the home mortgage to achieve 100% debt freedom.", "illustration": { "kind": "photo", "imagePrompt": "Close-up of hands holding a set of house keys with a home exterior blurred in the background, warm daylight, no readable text, no logos.", "imageSearchTerm": "hands holding house keys in front of home", "alt": "A close-up of hands 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"label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "mortgage-rules", "15-year-fixed", "home-buying" ], "steps": [ "Aim for the 100% down plan by paying full cash whenever feasible", "If taking a mortgage, obtain only a conventional 15-year fixed-rate loan", "Ensure monthly payments do not exceed 25% of net monthly take-home pay", "Provide at least 10% to 20% down payment to minimize or eliminate PMI" ], "goal": "Ramsey Home Purchasing Rules", "uid": "1sk1b7q1s5tj50" }, { "id": "item-tmm-113", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "25-percent-cap", "take-home-pay", "mortgage-limit" ], "prompt": { "modality": "text", "value": "What is the maximum mortgage payment limit recommended by Dave Ramsey?" }, "options": [ { "modality": "text", "value": "25% of net monthly take-home pay including taxes and insurance", "short": "25% net take-home pay" }, { "modality": "text", "value": "50% of annual household gross revenue for high earning executives", "short": "50% annual gross revenue" }, { "modality": "text", "value": "33% of taxable adjusted income based on municipal property bands", "short": "33% taxable income band" }, { "modality": "text", "value": "45% of gross monthly income including revolving credit card minimums", "short": "45% gross with cards" } ], "correctIndex": 0, "explanation": "Total monthly housing costs (principal, interest, taxes, and insurance) must not exceed 25% of net take-home pay.", "uid": "1jprcqwaou3gi" }, { "id": "item-tmm-114", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "down-payment", "pmi", "home-equity" ], "template": "A minimum down payment of 10% is required on a home, though ___ is strongly recommended to eliminate private mortgage insurance (PMI).", "answer": "20%", "distractors": [ "50%", "5%", "100%" ], "explanation": "A 20% down payment eliminates expensive PMI fees and provides immediate home equity.", "uid": "1d6bt28m52xzm" }, { "id": "item-tmm-115", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "15-vs-30-year-mortgage", "interest-savings", "equity" ], "aspect": "Total interest paid and timeline to debt freedom", "difference": "A 15-year fixed mortgage saves over $220,000 in interest on an average home and builds 100% equity fifteen years faster than a 30-year loan.", "title": "15-Year Fixed Mortgage", "body": "A 15-year fixed mortgage saves over $220,000 in interest on an average home and builds full home equity fifteen years faster than a 30-year loan.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a modest suburban house exterior on a sunny day, welcoming and neutral mood, no readable text, no visible address or logos.", "imageSearchTerm": "small suburban house exterior daylight", "alt": "A small suburban house exterior on a sunny day.", "credit": "Unsplash Β· Annie Spratt Β· Unsplash License", "creditUrl": "https://unsplash.com/photos/a-suburban-house-with-a-garden-and-large-tree-IfRiqxKhARA", "subject": "A cream-colored suburban house with a dormer window and arched front door, seen across a garden and hedge with a neighboring house visible nearby β€” an ordinary small suburban house exterior in daylight.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-115.webp" }, "uid": "1cdheuv179lc3x" }, { "id": "item-tmm-116", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "tax-deduction-myth", "mortgage-fallacy", "bad-math" ], "title": "The Mortgage Tax Deduction Fallacy", "body": "Keeping a mortgage for the income tax deduction is bad math; you pay $10,000 in interest to the bank to save $2,500 in taxes.", "uid": "uyqgb1hxaf9z" }, { "id": "item-tmm-118", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "arm-mortgage", "interest-risk", "predatory-lending" ], "term": { "modality": "text", "value": "Adjustable-Rate Mortgage (ARM)" }, "definition": { "modality": "text", "value": "A home mortgage where the interest rate adjusts with market indices, transferring interest rate risk from the bank directly onto the homeowner." }, "uid": "jlbxqxzfy6f7" }, { "id": "item-tmm-119", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 11" }, "tags": [ "100-percent-equity", "largest-expense", "cash-flow" ], "title": "The Power of Owning 100% of Your Home", "body": "Paying off the mortgage eliminates the single largest monthly expense from the budget, exploding monthly free cash flow.", "illustration": { "kind": "photo", "imagePrompt": "A family standing together on the front porch of their house, smiling, bright daylight, candid documentary style, no readable text, no logos.", "imageSearchTerm": "family standing in front of their house", "alt": "A family standing 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"text", "value": "Borrow against parental home equity to finance campus living expenses", "short": "Borrow against home equity" }, { "modality": "text", "value": "Take federal subsidized student loans and apply for government loan forgiveness", "short": "Federal loans, then forgiveness" }, { "modality": "text", "value": "Enroll in private out-of-state universities using credit card installment plans", "short": "Out-of-state private credit plan" } ], "correctIndex": 0, "explanation": "Combining in-state tuition, community college credits, part-time jobs, and scholarships enables graduating debt-free.", "uid": "9kzf1r1i56x6l" }, { "id": "item-tmm-121", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "term-life", "income-replacement", "pure-insurance" ], "term": { "modality": "text", "value": "Term Life Insurance" }, "definition": { "modality": "text", "value": "A pure death benefit policy purchased for a set 15 to 20 year period providing 10 to 12 times annual gross income at low monthly cost." }, "uid": "3v6gat1ij0gm7" }, { "id": "item-tmm-122", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "whole-life-trap", "cash-value", "poor-returns" ], "title": "The Whole Life Insurance Trap", "body": "Cash value whole life insurance is one of the worst financial products ever invented, combining expensive premiums with abysmal 1% to 3% returns.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of stapled insurance policy papers and a pen on a desk, neutral office lighting, no readable text, no logos.", "imageSearchTerm": "insurance policy documents and pen on desk", "alt": "Insurance policy documents and a pen on a desk.", "credit": "Pexels Β· Mikhail Nilov Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/a-notebook-and-laptop-on-the-table-7735621/", "subject": "Overhead flat lay of a clipboard titled 'HOME INSURANCE POLICY' with a pen resting on it, beside a notebook, water glass, small plant and laptop on a wood-look desk β€” directly matches the card.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-122.webp" }, "uid": "1stf8301hby0ce" }, { "id": "item-tmm-123", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "buy-term-invest-difference", "btid", "wealth-strategy" ], "steps": [ "Purchase a 15-to-20-year level term life policy for 10-12x gross income", "Cancel expensive whole life or universal life policies", "Redirect monthly premium savings into growth mutual funds in Baby Step 4", "Achieve self-insured status once invested assets generate enough annual income to replace your paycheck" ], "goal": "Executing 'Buy Term and Invest the Difference'", "uid": "akputf820b8x" }, { "id": "item-tmm-124", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "death-benefit-forfeiture", "cash-value-loss", "insurance" ], "prompt": { "modality": "text", "value": "What happens to the accumulated cash value in a whole life policy upon the policyholder's death?" }, "options": [ { "modality": "text", "value": "The insurance company pays the death benefit and absorbs the cash value", "short": "Insurer absorbs cash value" }, { "modality": "text", "value": "State insurance regulators distribute the cash value among local schools", "short": "State distributes funds" }, { "modality": "text", "value": "The full cash value is transferred tax-free to the designated beneficiary", "short": "Cash value paid to beneficiary" }, { "modality": "text", "value": "The cash value is automatically rolled over into a surviving spouse IRA", "short": "Rollover into spouse IRA" } ], "correctIndex": 0, "explanation": "Upon death, whole life companies pay the face death benefit but confiscate and absorb the accumulated cash value.", "uid": "1tl9ubtm5kotn" }, { "id": "item-tmm-125", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "self-insured", "liquid-wealth", "no-insurance-needed" ], "term": { "modality": "text", "value": "Self-Insured Status" }, "definition": { "modality": "text", "value": "Reaching a level of liquid investment wealth where family financial security is fully self-funded, eliminating the need for commercial life insurance." }, "uid": "1wdoi9h116umnj" }, { "id": "item-tmm-126", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "disability-insurance", "own-occupation", "income-protection" ], "term": { "modality": "text", "value": "Long-Term Disability Insurance" }, "definition": { "modality": "text", "value": "An insurance policy that replaces 60% to 70% of gross income if disabled, featuring an own-occupation definition of disability." }, "uid": "1dq79byfsgsx0" }, { "id": "item-tmm-127", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "ltc-insurance", "age-60", "nursing-home" ], "template": "Long-Term Care (LTC) Insurance should typically be purchased around an individual's ___ birthday to defend retirement assets against nursing home costs.", "answer": "60th", "distractors": [ "40th", "75th", "50th" ], "explanation": "LTC insurance should be secured at age 60 to protect against catastrophic elder healthcare and nursing home costs.", "uid": "kjvwidhu3ijj" }, { "id": "item-tmm-128", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "identity-theft", "restoration-service", "security" ], "title": "Full-Service Identity Theft Restoration", "body": "Identity theft protection must include dedicated restoration specialists who physically clean up fraud rather than passive credit monitoring alone.", "illustration": { "kind": "photo", "imagePrompt": "A person sitting at a desk, phone to their ear, looking concerned while reviewing something on a laptop screen, natural indoor light, no readable text, no logos.", "imageSearchTerm": "person on phone looking concerned at laptop", "alt": "A person on the phone, looking concerned while reviewing something on their laptop.", "credit": "Pexels Β· MART PRODUCTION Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/a-man-in-brown-long-sleeves-wearing-eyeglasses-while-talking-on-the-phone-7255720/", "subject": "Man with glasses and a tan flannel shirt, phone held to his ear, looking down at an open silver laptop directly in front of him with a serious, concerned expression; exposed brick wall in the background.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-128.webp" }, "uid": "17fzyuv1vbi02l" }, { "id": "item-tmm-129", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "higher-deductibles", "auto-insurance", "premium-savings" ], "prompt": { "modality": "text", "value": "How does having a fully funded emergency reserve enable lower ongoing insurance premiums?" }, "options": [ { "modality": "text", "value": "Insurance carriers provide statutory discounts to FDIC account holders", "short": "FDIC statutory discounts" }, { "modality": "text", "value": "It eliminates the legal requirement to carry mandatory health coverage", "short": "Eliminate health coverage" }, { "modality": "text", "value": "It allows raising collision and comprehensive deductibles to $1,000", "short": "Raise deductibles to $1K" }, { "modality": "text", "value": "State insurance regulators waive liability limits on funded accounts", "short": "Waive liability limits" } ], "correctIndex": 2, "explanation": "Having liquid cash allows raising deductibles to $1,000, lowering monthly premiums while remaining protected.", "uid": "yyx17b1m8qbn9" }, { "id": "item-tmm-131", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "short-term-disability", "unnecessary-insurance", "emergency-fund" ], "title": "Redundancy of Short-Term Disability", "body": "Short-term disability insurance is unnecessary because the fully funded 3-to-6-month emergency reserve covers short-term gaps without premiums.", "uid": "126fj3y1og8lv0" }, { "id": "item-tmm-132", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "medicare-myth", "nursing-home", "ltc-need" ], "prompt": { "modality": "text", "value": "Why is relying on Medicare for extended nursing home care a dangerous misconception?" }, "options": [ { "modality": "text", "value": "Medicare does not cover extended custodial nursing home stays", "short": "Excludes nursing homes" }, { "modality": "text", "value": "Medicare automatically terminates upon reaching seventy years of age", "short": "Medicare ends at age 70" }, { "modality": "text", "value": "Medicare requires policyholders to surrender all primary home equity", "short": "Surrender home equity" }, { "modality": "text", "value": "Medicare benefits are restricted exclusively to military veterans", "short": "Military veterans only" } ], "correctIndex": 0, "explanation": "Medicare covers acute medical care but excludes long-term custodial nursing home care, which is why LTC coverage is important to secure around age 60.", "uid": "17872zf50qxw9" }, { "id": "item-tmm-133", "shape": "cloze", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "term-length", "level-term", "15-to-20-years" ], "template": "Term life insurance policies should be secured for a level coverage term of ___ during child-rearing and mortgage years.", "answer": "15 to 20 years", "distractors": [ "50 years", "1 to 2 years", "lifetime" ], "explanation": "A 15-to-20-year term policy covers the critical window until children are independent and investments make you self-insured.", "uid": "1czn3doqpvd6u" }, { "id": "item-tmm-134", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "hsa", "health-insurance", "high-deductible" ], "title": "High-Deductible Health Plans and HSAs", "body": "Pairing higher-deductible health plans with Health Savings Accounts provides major medical defense while lowering monthly premiums.", "illustration": { "kind": "photo", "imagePrompt": "A stethoscope resting on top of a medical bill and insurance card on a desk, soft natural light, close-up, text illegible, no logos.", "imageSearchTerm": "stethoscope and medical bill on desk", "alt": "A stethoscope resting on a medical bill and insurance card on a desk.", "credit": "Pexels Β· Tara Winstead Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/a-blank-white-paper-beside-ball-pen-and-stethoscope-7723686/", "subject": "Same flat-lay set (laptop, pen, blank white paper, coiled black stethoscope on sage-green desk) from a slightly different angle β€” again a blank sheet standing in for paperwork.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-134.webp" }, "uid": "2r0i8eqd7sxo" }, { "id": "item-tmm-135", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 8" }, "tags": [ "guaranteed-replacement-cost", "homeowners-insurance", "inflation" ], "term": { "modality": "text", "value": "Guaranteed Replacement Cost" }, "definition": { "modality": "text", "value": "A homeowners insurance endorsement that pays the full cost to rebuild a destroyed home regardless of construction material inflation." }, "uid": "wk2uh51rypp6b" }, { "id": "item-tmm-136", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "pinnacle-point", "financial-milestone", "passive-growth" ], "term": { "modality": "text", "value": "Investment Income Surpassing Job Income" }, "definition": { "modality": "text", "value": "The milestone where annual investment returns generate more income each year than the individual earns working full-time employment." }, "uid": "1w7mr9q3swpwk" }, { "id": "item-tmm-137", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 12" }, "tags": [ "three-uses-of-money", "fun-investing-giving", "stewardship" ], "prompt": { "modality": "text", "value": "According to Dave Ramsey, what are the only three legitimate purposes of accumulated wealth?" }, "options": [ { "modality": "text", "value": "Political lobbying, corporate leverage acquisitions, and offshore trusts", "short": "Lobbying, leverage, trusts" }, { "modality": "text", "value": "Fun, investing for continued growth, and radical philanthropic giving", "short": "Fun, investing, and giving" }, { "modality": "text", "value": "Conspicuous luxury collecting, speculative trading, and credit scoring", "short": "Luxury, speculation, credit" }, { "modality": "text", "value": "Early retirement hoarding, tax avoidance schemes, and luxury leasing", "short": "Hoarding, tax avoidance" } ], "correctIndex": 1, "explanation": "Wealth has only three legitimate biblical uses: enjoying healthy fun, investing for growth, and radical generosity.", "uid": "a59y1h4czogv" }, { "id": "item-tmm-138", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "core-mantra", "live-and-give", "lifestyle" ], "title": "The Defining Makeover Mantra", "body": "Live like no one else, so that later you can live and give like no one else.", "uid": "z8xac71fen85" }, { "id": "item-tmm-139", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "proverbs-13-22", "generational-inheritance", "scripture" ], "term": { "modality": "text", "value": "Proverbs 13:22 Principle" }, "definition": { "modality": "text", "value": "The biblical mandate stating that a good person leaves an enduring financial and character inheritance to their children's children." }, "uid": "1e0htua1sy2ipk" }, { "id": "item-tmm-140", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "character-before-capital", "entitled-heirs", "parenting" ], "title": "Character Before Capital", "body": "Passing substantial wealth to undisciplined, entitled heirs guarantees their destruction; character must be instilled before capital transfer.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a parent and child sitting together at a kitchen table having a warm conversation, soft natural light, candid mood, no readable text, no logos.", "imageSearchTerm": "parent and child talking together at home", "alt": "A parent and child sitting together and talking at home.", "credit": "Unsplash Β· Vitaly Gariev Β· Unsplash License", "creditUrl": "https://unsplash.com/photos/father-and-son-looking-at-each-other-on-floor-R05oxl9PjxM", "subject": "Color stock photo of a father and young son lying face-to-face on the floor of a colorful home playroom, propped on their elbows, smiling and clearly talking with each other.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-140.webp" }, "uid": "1jdfnry1fygv6s" }, { "id": "item-tmm-141", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "estate-planning", "wills", "trusts" ], "steps": [ "Draft and execute a legally binding last will and testament", "Establish durable financial powers of attorney and healthcare directives", "Utilize revocable living trusts to manage generational asset distribution", "Communicate estate values and responsibilities transparently with heirs" ], "goal": "Building a Complete Estate Plan", "uid": "996l0l1arb4pz" }, { "id": "item-tmm-142", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "radical-generosity", "spontaneous-giving", "philanthropy" ], "term": { "modality": "text", "value": "Radical Generosity" }, "definition": { "modality": "text", "value": "The spontaneous, transformative practice of anonymously using personal wealth to fund missions, pay off mortgages, and bless others." }, "uid": "1rk2h3q1er28ac" }, { "id": "item-tmm-143", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "career-choice-vs-necessity", "financial-autonomy", "work" ], "aspect": "Motivation and relationship to employment", "difference": "In Baby Step 7, work is an intentional, joyful choice of calling and contribution, whereas pre-makeover work is driven by debt survival.", "title": "Baby Step 7 Career Labor", "body": "In Baby Step 7, work becomes an intentional, joyful choice of calling and contribution, rather than the debt-driven survival hustle of the pre-makeover years.", "illustration": { "kind": "photo", "imagePrompt": "An editorial photograph of a person smiling while working at a desk, 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antidote to selfishness; true stewardship views wealth as a resource held with open hands to impact humanity.", "illustration": { "kind": "photo", "imagePrompt": "Close-up of one person's hands giving a small stack of cash to another person's open hands, warm daylight, documentary style, no readable text, no logos.", "imageSearchTerm": "hands giving cash to another person", "alt": "A close-up of one person handing cash to another person's open hands.", "credit": "Pexels Β· https://kaboompics.com/ Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/hands-holding-a-10-dollar-bill-4968382/", "subject": "Close-up of two hands directly exchanging a single US ten-dollar bill against a dark indoor background β€” a clean, unambiguous giving/receiving gesture.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-144.webp" }, "uid": "1lpzl3m1f9xqpk" }, { "id": "item-tmm-145", "shape": "procedure", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "teaching-children", "work-ethic", "legacy-training" ], "steps": [ "Teach children the dignity and emotional connection of work and income", "Guide teenagers through zero-based budgeting and cash envelopes", "Encourage saving for cash car purchases and debt-free college degrees", "Model joyful, radical generosity by involving children in family giving" ], "goal": "Training Heirs for Generational Wealth", "uid": "hn41761kcylz4" }, { "id": "item-tmm-146", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 12" }, "tags": [ "100-percent-debt-free", "financial-peace", "liberty" ], "title": "The Reality of 100% Debt Freedom", "body": "Living 100% debt-free with a paid-off mortgage, full retirement investments, and emergency reserves delivers complete financial peace.", "illustration": { "kind": "photo", "imagePrompt": "Close-up of a pair of scissors cutting a plastic credit card in half over a table, bright even lighting, card details illegible, no logos.", "imageSearchTerm": "scissors cutting a credit card in half", "alt": "A close-up of scissors cutting a credit card in half." }, "uid": "1h0w74t1wpi52v" }, { "id": "item-tmm-147", "shape": "definition", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "legacy-wealth", "multi-generational", "heritage" ], "term": { "modality": "text", "value": "Legacy Wealth" }, "definition": { "modality": "text", "value": "Accumulated financial capital and spiritual values passed down across multiple generations to empower family heirs and community causes." }, "uid": "m7c4ytdzlu87" }, { "id": "item-tmm-148", "shape": "fact", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 13" }, "tags": [ "anonymous-giving", "pure-joy", "philanthropy" ], "title": "The Joy of Anonymous Philanthropy", "body": "Giving anonymously removes personal ego and recognition, unlocking pure philanthropic joy and transforming recipients' lives.", "illustration": { "kind": "photo", "imagePrompt": "A hand placing a plain sealed envelope into a wooden donation box, soft indoor lighting, no readable text, no logos.", "imageSearchTerm": "hand placing envelope into donation box", "alt": "A hand placing a plain envelope into a wooden donation box.", "credit": "Pexels Β· Defrino Maasy Β· Pexels License", "creditUrl": "https://www.pexels.com/photo/hand-donating-indonesian-rupiah-into-a-box-38429806/", "subject": "A close-up of a hand dropping a pink 100,000-Indonesian-Rupiah banknote into the slot of a rounded countertop collection/donation box, dark background.", "url": "https://cdn.recurxive.com/packs/total-money-makeover/images/item-tmm-148.webp" }, "uid": "w4veqeme89kc" }, { "id": "item-tmm-149", "shape": "mcqShort", "source": { "label": "Dave Ramsey, The Total Money Makeover, Chapter 12" }, "tags": [ "guilt-free-spending", "fun-category", "abundance" ], "prompt": { "modality": "text", "value": "Why is spending money on luxury amenities and vacations guilt-free in Baby Step 7?" }, "options": [ { "modality": "text", "value": "Credit bureaus grant bonus rating points for high volume consumer spending", "short": "Bonus credit points" }, { "modality": "text", "value": "Commercial banks waive transaction limits on high net worth accounts", "short": "Waived limits, high balances" }, { "modality": "text", "value": "All debts are gone, investments are fully funded, and money is paid in cash", "short": "No debt, cash funded" }, { "modality": "text", "value": "Luxury purchases are fully tax-deductible under federal corporate codes", "short": "Corporate tax deductions" } ], "correctIndex": 2, "explanation": "Having zero debt, fully funded retirement, and ample savings allows enjoying the fruits of labor with zero guilt.", "uid": "1vk15qu0tdmc" }, { "id": "tf-d-total-money-makeover-item-tmm-002", "shape": "trueFalse", "tags": [ "biography", "bankruptcy", "credit-crisis" ], "statement": "Ramsey's 1988 Bankruptcy: The legal liquidation of Dave Ramsey's $4M leveraged real estate portfolio at age twenty-eight following a $1.2M commercial bank loan recall within ninety days.", "isTrue": true, "why": "That definition is correct for \"Ramsey's 1988 Bankruptcy\".", "derivedFrom": "item-tmm-002", "uid": "11y89ed1xadh8v" }, { "id": "tf-df-total-money-makeover-item-tmm-009", "shape": "trueFalse", "tags": [ "education", "financial-peace", "curriculum" ], "statement": "SmartVestor Pro Network: A nine-week personal finance curriculum founded in 1994 by Dave Ramsey that has guided nearly 10 million people in budgeting and debt elimination.", "isTrue": false, "why": "That's the definition of \"Financial Peace University (FPU)\", not \"SmartVestor Pro Network\".", "derivedFrom": "item-tmm-009", "uid": "7ryb14kjg36a" }, { "id": "tf-df-total-money-makeover-item-tmm-012", "shape": "trueFalse", "tags": [ "economic-theory", "homo-economicus", "behavioral-finance" ], "statement": "Cash Envelope System: The theoretical model of humans as perfectly rational, calculating utility maximizers, rejected by Ramsey as unrepresentative of real household behavior.", "isTrue": false, "why": "That's the definition of \"Homo Economicus\", not \"Cash Envelope System\".", "derivedFrom": "item-tmm-012", "uid": "1dor7af19dskk5" }, { "id": "tf-df-total-money-makeover-item-tmm-018", "shape": "trueFalse", "tags": [ "car-leasing", "depreciation", "money-factor" ], "statement": "Cash Envelope System: A consumer financing agreement where the lessee pays for a vehicle's steepest depreciation curve plus opaque interest fees, ending with zero equity.", "isTrue": false, "why": "That's the definition of \"Automobile Lease\", not \"Cash Envelope System\".", "derivedFrom": "item-tmm-018", "uid": "1au1ri51ynasan" }, { "id": "tf-df-total-money-makeover-item-tmm-023", "shape": "trueFalse", "tags": [ "baby-step-1", "emergency-fund", "starter-fund" ], "statement": "Irregular Income Planning Sheet: A $1,000 cash reserve saved within thirty days to absorb minor unexpected life emergencies during the debt reduction journey.", "isTrue": false, "why": "That's the definition of \"Baby Step 1 Starter Emergency Fund\", not \"Irregular Income Planning Sheet\".", "derivedFrom": "item-tmm-023", "uid": "958zav1enmmid" }, { "id": "tf-d-total-money-makeover-item-tmm-024", "shape": "trueFalse", "tags": [ "murphy-law", "risk-buffer", "proverbs" ], "statement": "Murphy's Law Defense: Using a liquid starter emergency cash buffer to prevent minor mechanical or medical mishaps from forcing renewed credit borrowing.", "isTrue": true, "why": "That definition is correct for \"Murphy's Law Defense\".", "derivedFrom": "item-tmm-024", "uid": "161bu1u15dzxo0" }, { "id": "tf-d-total-money-makeover-item-tmm-028", "shape": "trueFalse", "tags": [ "neuroscience", "pain-of-paying", "insula" ], "statement": "The Pain of Paying: The neural friction activated in the brain's insular cortex when parting with physical currency, which is muted when using plastic cards.", "isTrue": true, "why": "That definition is correct for \"The Pain of Paying\".", "derivedFrom": "item-tmm-028", "uid": "rytrxv1hojmnd" }, { "id": "tf-df-total-money-makeover-item-tmm-034", "shape": "trueFalse", "tags": [ "gazelle-intensity", "proverbs", "austerity" ], "statement": "Murphy's Law Defense: An emergency behavioral posture derived from Proverbs 6:4-5 where an individual attacks debt with radical focus, sacrifice, and speed.", "isTrue": false, "why": "That's the definition of \"Gazelle Intensity\", not \"Murphy's Law Defense\".", "derivedFrom": "item-tmm-034", "uid": "f52cbg10o1y72" }, { "id": "tf-df-total-money-makeover-item-tmm-043", "shape": "trueFalse", "tags": [ "repayment-concentration", "self-efficacy", "academic-study" ], "statement": "Financial Shock Absorber: The behavioral economic principle where focusing 100% of surplus capital on eliminating a single debt target maximizes psychological motivation and completion.", "isTrue": false, "why": "That's the definition of \"Repayment Concentration\", not \"Financial Shock Absorber\".", "derivedFrom": "item-tmm-043", "uid": "1y2vz901c11uc6" }, { "id": "tf-d-total-money-makeover-item-tmm-046", "shape": "trueFalse", "tags": [ "baby-step-3", "full-emergency-fund", "cash-reserve" ], "statement": "Baby Step 3 Fully Funded Emergency Fund: A liquid reserve holding 3 to 6 months of basic household living expenses in a money market account to defend against major crises.", "isTrue": true, "why": "That definition is correct for \"Baby Step 3 Fully Funded Emergency Fund\".", "derivedFrom": "item-tmm-046", "uid": "oubmyc1p5uanq" }, { "id": "tf-df-total-money-makeover-item-tmm-049", "shape": "trueFalse", "tags": [ "money-market", "liquidity", "fdic" ], "statement": "SmartVestor Pro Network: An FDIC-insured liquid deposit account with check-writing privileges that pays modest interest while keeping principal completely safe.", "isTrue": false, "why": "That's the definition of \"Money Market Account (MMA)\", not \"SmartVestor Pro Network\".", "derivedFrom": "item-tmm-049", "uid": "therjosjzbwm" }, { "id": "tf-d-total-money-makeover-item-tmm-053", "shape": "trueFalse", "tags": [ "shock-absorber", "resilience", "buffer" ], "statement": "Financial Shock Absorber: A substantial liquid cash buffer that absorbs major unexpected life disruptions without forcing a household to incur debt.", "isTrue": true, "why": "That definition is correct for \"Financial Shock Absorber\".", "derivedFrom": "item-tmm-053", "uid": "1rjxvkk1lglqba" }, { "id": "tf-d-total-money-makeover-item-tmm-057", "shape": "trueFalse", "tags": [ "fdic-insurance", "bank-safety", "deposit-protection" ], "statement": "FDIC Insurance Protection: Federal government backing that guarantees bank deposit balances up to statutory limits, ensuring absolute principal security for emergency funds.", "isTrue": true, "why": "That definition is correct for \"FDIC Insurance Protection\".", "derivedFrom": "item-tmm-057", "uid": "lgnybb1xebtyd" }, { "id": "tf-d-total-money-makeover-item-tmm-062", "shape": "trueFalse", "tags": [ "zero-based-budget", "income-outgo", "everydollar" ], "statement": "Zero-Based Budget: A cash flow plan where every single dollar of net income is allocated across categories so that total income minus total outgo equals exactly zero.", "isTrue": true, "why": "That definition is correct for \"Zero-Based Budget\".", "derivedFrom": "item-tmm-062", "uid": "1gx2z971y0absh" }, { "id": "tf-df-total-money-makeover-item-tmm-065", "shape": "trueFalse", "tags": [ "cash-envelopes", "paper-currency", "discipline" ], "statement": "Self-Insured Status: A cash management method where physical currency is withdrawn and divided into labeled envelopes for volatile categories like groceries and dining out.", "isTrue": false, "why": "That's the definition of \"Cash Envelope System\", not \"Self-Insured Status\".", "derivedFrom": "item-tmm-065", "uid": "gjz6bbok04zx" }, { "id": "tf-df-total-money-makeover-item-tmm-067", "shape": "trueFalse", "tags": [ "everydollar", "digital-app", "budget-tool" ], "statement": "Ramsey's 1988 Bankruptcy: Ramsey Solutions' official digital zero-based budgeting tool engineered to track income, expenses, and Baby Step progress.", "isTrue": false, "why": "That's the definition of \"EveryDollar Application\", not \"Ramsey's 1988 Bankruptcy\".", "derivedFrom": "item-tmm-067", "uid": "1yaonee1bz7cys" }, { "id": "tf-d-total-money-makeover-item-tmm-071", "shape": "trueFalse", "tags": [ "blow-money", "personal-allowance", "marital-harmony" ], "statement": "Blow Money: A designated monthly cash allocation given to each spouse to spend freely on any personal item without consulting or tracking receipts.", "isTrue": true, "why": "That definition is correct for \"Blow Money\".", "derivedFrom": "item-tmm-071", "uid": "ugio6j14r9bf5" }, { "id": "tf-df-total-money-makeover-item-tmm-076", "shape": "trueFalse", "tags": [ "sinking-funds", "non-monthly-expenses", "amortization" ], "statement": "Radical Generosity: A savings method where expected non-monthly expenditures are divided by twelve and accumulated monthly to meet future bills smoothly.", "isTrue": false, "why": "That's the definition of \"Sinking Fund\", not \"Radical Generosity\".", "derivedFrom": "item-tmm-076", "uid": "xak1a3qkh79t" }, { "id": "tf-df-total-money-makeover-item-tmm-078", "shape": "trueFalse", "tags": [ "irregular-income", "commission-earners", "priority-list" ], "statement": "Growth Funds (Mid Cap): A prioritized monthly budgeting tool for commissioned and self-employed workers that funds expenses sequentially as revenue arrives.", "isTrue": false, "why": "That's the definition of \"Irregular Income Planning Sheet\", not \"Growth Funds (Mid Cap)\".", "derivedFrom": "item-tmm-078", "uid": "14jnvfptss21j" }, { "id": "tf-df-total-money-makeover-item-tmm-085", "shape": "trueFalse", "tags": [ "cash-discount", "negotiation", "retail-power" ], "statement": "Aggressive Growth Funds (Small Cap): A consumer negotiation technique using physical hundred-dollar bills to secure price concessions on appliances, furniture, and cars.", "isTrue": false, "why": "That's the definition of \"Cash Discount Strategy\", not \"Aggressive Growth Funds (Small Cap)\".", "derivedFrom": "item-tmm-085", "uid": "xjitr41rsh12a" }, { "id": "tf-d-total-money-makeover-item-tmm-093", "shape": "trueFalse", "tags": [ "roth-ira", "tax-free-growth", "after-tax" ], "statement": "Roth IRA: An individual retirement account funded with after-tax dollars that compounds 100% tax-free and allows completely tax-free withdrawals in retirement.", "isTrue": true, "why": "That definition is correct for \"Roth IRA\".", "derivedFrom": "item-tmm-093", "uid": "1gie7optahjx7" }, { "id": "tf-d-total-money-makeover-item-tmm-095", "shape": "trueFalse", "tags": [ "growth-and-income", "large-cap", "blue-chip" ], "statement": "Growth and Income Funds (Large Cap): Mutual funds investing in established, blue-chip large-capitalization companies providing portfolio stability and dividend yields.", "isTrue": true, "why": "That definition is correct for \"Growth and Income Funds (Large Cap)\".", "derivedFrom": "item-tmm-095", "uid": "1x56mklbezczb" }, { "id": "tf-df-total-money-makeover-item-tmm-096", "shape": "trueFalse", "tags": [ "growth-funds", "mid-cap", "expansion" ], "statement": "Ramsey's 1988 Bankruptcy: Mutual funds investing in medium-sized corporations experiencing robust commercial expansion and solid capital appreciation.", "isTrue": false, "why": "That's the definition of \"Growth Funds (Mid Cap)\", not \"Ramsey's 1988 Bankruptcy\".", "derivedFrom": "item-tmm-096", "uid": "6kiyos81lecu" }, { "id": "tf-d-total-money-makeover-item-tmm-097", "shape": "trueFalse", "tags": [ "aggressive-growth", "small-cap", "high-beta" ], "statement": "Aggressive Growth Funds (Small Cap): Mutual funds investing in small-cap enterprises, dynamic startups, and emerging sectors with higher market volatility and growth potential.", "isTrue": true, "why": "That definition is correct for \"Aggressive Growth Funds (Small Cap)\".", "derivedFrom": "item-tmm-097", "uid": "1n4hql55lgorv" }, { "id": "tf-df-total-money-makeover-item-tmm-098", "shape": "trueFalse", "tags": [ "international-funds", "overseas", "global-diversification" ], "statement": "Baby Step 3 Fully Funded Emergency Fund: Mutual funds investing in major foreign enterprises outside the United States, providing geographical and currency diversification.", "isTrue": false, "why": "That's the definition of \"International Funds (Global / Overseas)\", not \"Baby Step 3 Fully Funded Emergency Fund\".", "derivedFrom": "item-tmm-098", "uid": "aozfjc1cp0rgi" }, { "id": "tf-d-total-money-makeover-item-tmm-103", "shape": "trueFalse", "tags": [ "smartvestor-pro", "financial-advisor", "guidance" ], "statement": "SmartVestor Pro Network: A network of vetted financial advisors endorsed by Ramsey Solutions who coach individuals on mutual fund investing and portfolio maintenance.", "isTrue": true, "why": "That definition is correct for \"SmartVestor Pro Network\".", "derivedFrom": "item-tmm-103", "uid": "ni6qfyao93h" }, { "id": "tf-df-total-money-makeover-item-tmm-106", "shape": "trueFalse", "tags": [ "esa-coverdell", "college-savings", "tax-free" ], "statement": "Ramsey's 1988 Bankruptcy: A tax-advantaged account allowing after-tax contributions to grow completely tax-free and withdraw tax-free for qualified education costs.", "isTrue": false, "why": "That's the definition of \"Education Savings Account (ESA / Coverdell)\", not \"Ramsey's 1988 Bankruptcy\".", "derivedFrom": "item-tmm-106", "uid": "1wsg8djlwoyot" }, { "id": "tf-d-total-money-makeover-item-tmm-107", "shape": "trueFalse", "tags": [ "529-plan", "state-college-savings", "higher-limits" ], "statement": "529 College Savings Plan: A state-sponsored tax-advantaged college savings plan recommended when household income exceeds ESA eligibility limits.", "isTrue": true, "why": "That definition is correct for \"529 College Savings Plan\".", "derivedFrom": "item-tmm-107", "uid": "1i8tiha6p01gk" }, { "id": "tf-df-total-money-makeover-item-tmm-111", "shape": "trueFalse", "tags": [ "100-percent-down", "cash-home", "real-estate" ], "statement": "Automobile Lease: Dave Ramsey's optimal home purchasing standard where the buyer pays 100% cash for a home, avoiding all interest and mortgages.", "isTrue": false, "why": "That's the definition of \"The 100% Down Plan\", not \"Automobile Lease\".", "derivedFrom": "item-tmm-111", "uid": "cpa9vqvzfldo" }, { "id": "tf-d-total-money-makeover-item-tmm-118", "shape": "trueFalse", "tags": [ "arm-mortgage", "interest-risk", "predatory-lending" ], "statement": "Adjustable-Rate Mortgage (ARM): A home mortgage where the interest rate adjusts with market indices, transferring interest rate risk from the bank directly onto the homeowner.", "isTrue": true, "why": "That definition is correct for \"Adjustable-Rate Mortgage (ARM)\".", "derivedFrom": "item-tmm-118", "uid": "97er6d14j0nxr" }, { "id": "tf-d-total-money-makeover-item-tmm-121", "shape": "trueFalse", "tags": [ "term-life", "income-replacement", "pure-insurance" ], "statement": "Term Life Insurance: A pure death benefit policy purchased for a set 15 to 20 year period providing 10 to 12 times annual gross income at low monthly cost.", "isTrue": true, "why": "That definition is correct for \"Term Life Insurance\".", "derivedFrom": "item-tmm-121", "uid": "ihu99f1yfzos9" }, { "id": "tf-d-total-money-makeover-item-tmm-125", "shape": "trueFalse", "tags": [ "self-insured", "liquid-wealth", "no-insurance-needed" ], "statement": "Self-Insured Status: Reaching a level of liquid investment wealth where family financial security is fully self-funded, eliminating the need for commercial life insurance.", "isTrue": true, "why": "That definition is correct for \"Self-Insured Status\".", "derivedFrom": "item-tmm-125", "uid": "113vb7xoen2kf" }, { "id": "tf-df-total-money-makeover-item-tmm-126", "shape": "trueFalse", "tags": [ "disability-insurance", "own-occupation", "income-protection" ], "statement": "Baby Step 3 Fully Funded Emergency Fund: An insurance policy that replaces 60% to 70% of gross income if disabled, featuring an own-occupation definition of disability.", "isTrue": false, "why": "That's the definition of \"Long-Term Disability Insurance\", not \"Baby Step 3 Fully Funded Emergency Fund\".", "derivedFrom": "item-tmm-126", "uid": "yc9rs71tefowt" }, { "id": "tf-df-total-money-makeover-item-tmm-135", "shape": "trueFalse", "tags": [ "guaranteed-replacement-cost", "homeowners-insurance", "inflation" ], "statement": "Education Savings Account (ESA / Coverdell): A homeowners insurance endorsement that pays the full cost to rebuild a destroyed home regardless of construction material inflation.", "isTrue": false, "why": "That's the definition of \"Guaranteed Replacement Cost\", not \"Education Savings Account (ESA / Coverdell)\".", "derivedFrom": "item-tmm-135", "uid": "uw723k1ohtofm" }, { "id": "tf-d-total-money-makeover-item-tmm-136", "shape": "trueFalse", "tags": [ "pinnacle-point", "financial-milestone", "passive-growth" ], "statement": "Investment Income Surpassing Job Income: The milestone where annual investment returns generate more income each year than the individual earns working full-time employment.", "isTrue": true, "why": "That definition is correct for \"Investment Income Surpassing Job Income\".", "derivedFrom": "item-tmm-136", "uid": "1juhong1wmiapi" }, { "id": "tf-df-total-money-makeover-item-tmm-139", "shape": "trueFalse", "tags": [ "proverbs-13-22", "generational-inheritance", "scripture" ], "statement": "Adjustable-Rate Mortgage (ARM): The biblical mandate stating that a good person leaves an enduring financial and character inheritance to their children's children.", "isTrue": false, "why": "That's the definition of \"Proverbs 13:22 Principle\", not \"Adjustable-Rate Mortgage (ARM)\".", "derivedFrom": "item-tmm-139", "uid": "fpo1v11fyi0yf" }, { "id": "tf-df-total-money-makeover-item-tmm-142", "shape": "trueFalse", "tags": [ "radical-generosity", "spontaneous-giving", "philanthropy" ], "statement": "Self-Insured Status: The spontaneous, transformative practice of anonymously using personal wealth to fund missions, pay off mortgages, and bless others.", "isTrue": false, "why": "That's the definition of \"Radical Generosity\", not \"Self-Insured Status\".", "derivedFrom": "item-tmm-142", "uid": "1rmeddb1hma4xp" }, { "id": "tf-d-total-money-makeover-item-tmm-147", "shape": "trueFalse", "tags": [ "legacy-wealth", "multi-generational", "heritage" ], "statement": "Legacy Wealth: Accumulated financial capital and spiritual values passed down across multiple generations to empower family heirs and community causes.", "isTrue": true, "why": "That definition is correct for \"Legacy Wealth\".", "derivedFrom": "item-tmm-147", "uid": "wy106bvd3to1" }, { "id": "ot-fin-denial-1", "shape": "mcq", "tags": [ "ramsey", "behavior", "money-mindset" ], "prompt": { "modality": "text", "value": "According to Dave Ramsey, personal finance is what percentage behavior vs. head knowledge?" }, "options": [ { "modality": "text", "value": "80% behavior, 20% knowledge" }, { "modality": "text", "value": "50% behavior, 50% knowledge" }, { "modality": "text", "value": "20% behavior, 80% knowledge" }, { "modality": "text", "value": "30% behavior, 70% knowledge" } ], "correctIndex": 0, "explanation": "Ramsey's core premise is that money success is 80% behavior and only 20% head knowledge β€” most people already know what to do.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "13mov5pigznsf" }, { "id": "ot-fin-denial-2", "shape": "mcq", "tags": [ "ramsey", "bankruptcy", "real-estate" ], "prompt": { "modality": "text", "value": "What amount in short-term commercial notes did a successor bank demand within 90 days, triggering Ramsey's 1988 bankruptcy?" }, "options": [ { "modality": "text", "value": "$1.2 million" }, { "modality": "text", "value": "$800,000" }, { "modality": "text", "value": "$4 million" }, { "modality": "text", "value": "$3 million" } ], "correctIndex": 0, "explanation": "The bank that acquired Ramsey's lender called $1.2 million in notes due within 90 days, starting the liquidity collapse that led to his bankruptcy.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1jor2151umy6s3" }, { "id": "ot-fin-denial-3", "shape": "mcq", "tags": [ "financial-denial", "behavior" ], "prompt": { "modality": "text", "value": "A family rationalizes their credit card debt as normal because their friends carry the same balances. What is this called?" }, "options": [ { "modality": "text", "value": "Financial denial" }, { "modality": "text", "value": "Homo economicus" }, { "modality": "text", "value": "The pain of paying" }, { "modality": "text", "value": "Keeping up with the Joneses" } ], "correctIndex": 0, "explanation": "Financial denial is rationalizing debt as ordinary because peers carry similar burdens; the other terms describe different behavioral-economics concepts.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "nx1w1k15ubnl6" }, { "id": "ot-fin-denial-4", "shape": "mcq", "tags": [ "baby-step-1", "emergency-fund" ], "prompt": { "modality": "text", "value": "How much cash should most households save within 30 days as the Baby Step 1 Starter Emergency Fund?" }, "options": [ { "modality": "text", "value": "$1,000" }, { "modality": "text", "value": "$500" }, { "modality": "text", "value": "$2,000" }, { "modality": "text", "value": "$3,000" } ], "correctIndex": 0, "explanation": "Baby Step 1 targets a $1,000 cash starter fund within 30 days ($500 applies only to households earning under $20,000 a year).", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1d7xm441vgo3o6" }, { "id": "ot-fin-denial-5", "shape": "mcq", "tags": [ "homo-economicus", "behavior", "ramsey" ], "prompt": { "modality": "text", "value": "Ramsey argues that carrying high-interest debt while earning less on savings mainly reflects what, not a math deficiency?" }, "options": [ { "modality": "text", "value": "Emotional impulses and societal comparison" }, { "modality": "text", "value": "Insufficient financial literacy" }, { "modality": "text", "value": "Bank-imposed borrowing minimums" }, { "modality": "text", "value": "Slow wage growth relative to inflation" } ], "correctIndex": 0, "explanation": "Ramsey rejects the 'Homo economicus' rational-actor model: people carry costly debt due to emotional impulses, societal comparison, and instant gratification β€” not a math or literacy gap.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "iuquunwunlqd" }, { "id": "ot-debt-myths-1", "shape": "mcq", "tags": [ "debt-snowball", "baby-step-2" ], "prompt": { "modality": "text", "value": "Ramsey's Debt Snowball for Baby Step 2 lists debts in which order?" }, "options": [ { "modality": "text", "value": "Smallest to largest balance" }, { "modality": "text", "value": "Highest to lowest interest rate" }, { "modality": "text", "value": "Largest to smallest balance" }, { "modality": "text", "value": "Oldest to newest account" } ], "correctIndex": 0, "explanation": "The Debt Snowball orders debts smallest to largest balance to build quick wins and psychological momentum, unlike the interest-rate-based avalanche method.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1gm1dne10cstko" }, { "id": "ot-debt-myths-2", "shape": "mcq", "tags": [ "debt-myths", "baby-step-1" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of the debt myths Ramsey dismantles in this lesson?" }, "options": [ { "modality": "text", "value": "Emergency fund myth" }, { "modality": "text", "value": "Cosigning myth" }, { "modality": "text", "value": "Car leasing myth" }, { "modality": "text", "value": "Debt consolidation myth" } ], "correctIndex": 0, "explanation": "Ramsey attacks the cosigning, leasing, credit-card-rewards, and consolidation myths; the emergency fund is a Baby Step tool, not a myth he debunks.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1eop1uhn4lb7" }, { "id": "ot-debt-myths-3", "shape": "mcq", "tags": [ "car-leasing", "depreciation" ], "prompt": { "modality": "text", "value": "Per Ramsey, leasing a car forces the consumer to pay for which cost?" }, "options": [ { "modality": "text", "value": "The vehicle's steepest depreciation" }, { "modality": "text", "value": "Sales tax on the full price" }, { "modality": "text", "value": "Extended warranty premiums" }, { "modality": "text", "value": "Dealer holdback fees" } ], "correctIndex": 0, "explanation": "Leasing has the lessee absorb the car's steepest depreciation curve (40-60% in three years) plus the hidden money factor, per Ramsey.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "f8x8ue182vhd8" }, { "id": "ot-debt-myths-4", "shape": "mcq", "tags": [ "credit-cards", "pain-of-paying" ], "prompt": { "modality": "text", "value": "Per the Dun & Bradstreet study Ramsey cites, how much more do consumers spend using plastic instead of cash?" }, "options": [ { "modality": "text", "value": "12% to 18% more" }, { "modality": "text", "value": "5% to 10% more" }, { "modality": "text", "value": "20% to 30% more" }, { "modality": "text", "value": "25% to 40% more" } ], "correctIndex": 0, "explanation": "The cited Dun & Bradstreet study found consumers spend 12% to 18% more with cards than cash, due to the muted 'pain of paying.'", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1mfp9u9111aurf" }, { "id": "ot-debt-myths-5", "shape": "mcq", "tags": [ "debt-consolidation" ], "prompt": { "modality": "text", "value": "Per Ramsey, what share of consumers who consolidate credit card debt rack up new revolving debt within two years?" }, "options": [ { "modality": "text", "value": "Over 75%" }, { "modality": "text", "value": "Over 25%" }, { "modality": "text", "value": "Over 50%" }, { "modality": "text", "value": "Nearly 90%" } ], "correctIndex": 0, "explanation": "Ramsey cites that over 75% of consumers who consolidate debt without changing habits end up with both the consolidation loan and new revolving debt.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1c0iyvi12hgvq4" }, { "id": "ot-retirement-allocation-1", "shape": "mcq", "tags": [ "baby-step-4", "retirement", "percentage" ], "prompt": { "modality": "text", "value": "Under Baby Step 4, what percentage of gross household income should be invested in retirement funds?" }, "options": [ { "modality": "text", "value": "10%" }, { "modality": "text", "value": "15%" }, { "modality": "text", "value": "20%" }, { "modality": "text", "value": "25%" } ], "correctIndex": 1, "explanation": "Ramsey sets a non-negotiable benchmark of exactly 15% of gross household income for retirement investing in Baby Step 4.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "y4matm1k40kgo" }, { "id": "ot-retirement-allocation-2", "shape": "mcq", "tags": [ "investment-waterfall", "roth-ira" ], "prompt": { "modality": "text", "value": "After maximizing the employer 401(k) match, where should the next retirement dollars go in Ramsey's investment waterfall?" }, "options": [ { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "Traditional 401(k)" }, { "modality": "text", "value": "Health Savings Account" }, { "modality": "text", "value": "Traditional IRA" } ], "correctIndex": 0, "explanation": "The waterfall goes employer match first, then Roth IRA for tax-free growth, then back to the 401(k) or HSA if 15% isn't yet reached.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "5cmjm14g44x4" }, { "id": "ot-retirement-allocation-3", "shape": "mcq", "tags": [ "mutual-funds", "quadrants" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of Ramsey's four Growth Stock Mutual Fund quadrants?" }, "options": [ { "modality": "text", "value": "Growth and Income" }, { "modality": "text", "value": "Aggressive Growth" }, { "modality": "text", "value": "International" }, { "modality": "text", "value": "Balanced Fund" } ], "correctIndex": 3, "explanation": "Ramsey's four quadrants are Growth and Income, Growth, Aggressive Growth, and International; a Balanced Fund isn't one since he invests exclusively in growth stock funds.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "mikm3fvux3v5" }, { "id": "ot-retirement-allocation-4", "shape": "mcq", "tags": [ "mutual-funds", "fund-selection" ], "prompt": { "modality": "text", "value": "What minimum performance history does Ramsey recommend when selecting a growth mutual fund?" }, "options": [ { "modality": "text", "value": "Five-year" }, { "modality": "text", "value": "Ten-year" }, { "modality": "text", "value": "Fifteen-year" }, { "modality": "text", "value": "Twenty-year" } ], "correctIndex": 1, "explanation": "Ramsey advises choosing funds with at least a ten-year track record of matching or beating market averages.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1ylb3r11o33thj" }, { "id": "ot-retirement-allocation-5", "shape": "mcq", "tags": [ "roth-ira", "retirement-accounts" ], "prompt": { "modality": "text", "value": "Which retirement account is funded with after-tax dollars and allows completely tax-free withdrawals?" }, "options": [ { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "Traditional 401(k)" }, { "modality": "text", "value": "SEP IRA" }, { "modality": "text", "value": "Traditional IRA" } ], "correctIndex": 0, "explanation": "A Roth IRA uses after-tax contributions that grow tax-free and can be withdrawn tax-free in retirement, unlike pre-tax accounts.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "kyodur1tvhwtt" }, { "id": "ot-college-mortgage-1", "shape": "mcq", "tags": [ "baby-step-5", "college-funding", "esa" ], "prompt": { "modality": "text", "value": "What is Ramsey's primary recommended vehicle for funding a child's college education?" }, "options": [ { "modality": "text", "value": "ESA/Coverdell" }, { "modality": "text", "value": "Whole life insurance policy" }, { "modality": "text", "value": "UTMA/UGMA account" }, { "modality": "text", "value": "Savings bonds" } ], "correctIndex": 0, "explanation": "Ramsey's primary recommendation is the ESA/Coverdell; he condemns insurance, UTMA/UGMA, and savings bonds for college funding.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1drp8d71x05gj5" }, { "id": "ot-college-mortgage-2", "shape": "mcq", "tags": [ "baby-step-6", "mortgage-rules" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of Ramsey's four mortgage rules for buying a home?" }, "options": [ { "modality": "text", "value": "15-year fixed-rate loan" }, { "modality": "text", "value": "25% take-home pay cap" }, { "modality": "text", "value": "100% cash down plan" }, { "modality": "text", "value": "30-year fixed-rate loan" } ], "correctIndex": 3, "explanation": "Ramsey explicitly rejects the 30-year mortgage, requiring instead a 15-year fixed rate, a 25% pay cap, and ideally paying 100% cash.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1e8msdhkjxe3j" }, { "id": "ot-college-mortgage-3", "shape": "mcq", "tags": [ "down-payment", "pmi" ], "prompt": { "modality": "text", "value": "What down payment percentage does Ramsey say is strongly advised in order to eliminate PMI?" }, "options": [ { "modality": "text", "value": "10%" }, { "modality": "text", "value": "20%" }, { "modality": "text", "value": "30%" }, { "modality": "text", "value": "50%" } ], "correctIndex": 1, "explanation": "While 10% is the minimum required, Ramsey strongly advises 20% down to eliminate private mortgage insurance (PMI).", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "19sy00j1nzefm9" }, { "id": "ot-college-mortgage-4", "shape": "mcq", "tags": [ "arm", "mortgage-types" ], "prompt": { "modality": "text", "value": "Which mortgage type does Ramsey say to never use because its interest rate adjusts with market indices?" }, "options": [ { "modality": "text", "value": "Adjustable-Rate Mortgage" }, { "modality": "text", "value": "15-Year Fixed-Rate Mortgage" }, { "modality": "text", "value": "Interest-Only Loan" }, { "modality": "text", "value": "Reverse Mortgage" } ], "correctIndex": 0, "explanation": "An ARM shifts interest rate risk onto the homeowner as rates move with market indices, which Ramsey forbids in favor of fixed rates.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "y3tpo31hbb94h" }, { "id": "ot-college-mortgage-5", "shape": "mcq", "tags": [ "mortgage", "take-home-pay-cap" ], "prompt": { "modality": "text", "value": "Under Ramsey's mortgage rule, the monthly payment (including PITI and PMI) must not exceed what share of net take-home pay?" }, "options": [ { "modality": "text", "value": "25%" }, { "modality": "text", "value": "33%" }, { "modality": "text", "value": "40%" }, { "modality": "text", "value": "50%" } ], "correctIndex": 0, "explanation": "Ramsey caps the total monthly mortgage payment, including taxes, insurance, and PMI, at 25% of net monthly take-home pay.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1mb1ci6a9vdmk" }, { "id": "ot-insurance-term-multiplier", "shape": "mcq", "tags": [ "term-life", "insurance" ], "prompt": { "modality": "text", "value": "Per Ramsey, term life insurance should provide a death benefit equal to how many times gross annual income?" }, "options": [ { "modality": "text", "value": "10 to 12 times" }, { "modality": "text", "value": "5 to 7 times" }, { "modality": "text", "value": "15 to 18 times" }, { "modality": "text", "value": "20 to 25 times" } ], "correctIndex": 0, "explanation": "Ramsey recommends a death benefit of 10 to 12 times gross annual income, enough to replace lost income for the family.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1i4a8t6byqnp4" }, { "id": "ot-insurance-not-seven", "shape": "mcq", "tags": [ "insurance", "whole-life" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of Ramsey's seven essential insurance policies?" }, "options": [ { "modality": "text", "value": "Whole Life Insurance" }, { "modality": "text", "value": "Long-Term Disability Insurance" }, { "modality": "text", "value": "Identity Theft Protection" }, { "modality": "text", "value": "Long-Term Care Insurance" } ], "correctIndex": 0, "explanation": "Whole life is condemned by Ramsey as a poor product; the seven pillars include term life, disability, LTC, and identity theft protection instead.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1ctkxr11lm9ezb" }, { "id": "ot-insurance-ltc-age", "shape": "mcq", "tags": [ "long-term-care", "insurance" ], "prompt": { "modality": "text", "value": "Around what age does Ramsey recommend securing Long-Term Care (LTC) insurance?" }, "options": [ { "modality": "text", "value": "60" }, { "modality": "text", "value": "45" }, { "modality": "text", "value": "70" }, { "modality": "text", "value": "80" } ], "correctIndex": 0, "explanation": "Ramsey recommends securing LTC insurance around age 60, before nursing home risk and premiums rise sharply.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1ku9e5oalzaoe" }, { "id": "ot-insurance-hsa-pairing", "shape": "mcq", "tags": [ "health-insurance", "hsa" ], "prompt": { "modality": "text", "value": "Which account should be paired with a high-deductible health plan to lower premiums?" }, "options": [ { "modality": "text", "value": "Health Savings Account (HSA)" }, { "modality": "text", "value": "Flexible Spending Account (FSA)" }, { "modality": "text", "value": "Roth IRA" }, { "modality": "text", "value": "401(k)" } ], "correctIndex": 0, "explanation": "Ramsey recommends pairing higher-deductible health plans with an HSA to reduce premiums while capping out-of-pocket exposure.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "d15qrb1k13ist" }, { "id": "ot-insurance-term-vs-whole", "shape": "mcq", "tags": [ "term-life", "whole-life" ], "prompt": { "modality": "text", "value": "Why does Ramsey advise 'buy term and invest the difference' instead of whole life insurance?" }, "options": [ { "modality": "text", "value": "Far higher cost, far lower return" }, { "modality": "text", "value": "No death benefit at all" }, { "modality": "text", "value": "Term policies never expire" }, { "modality": "text", "value": "Cannot be cancelled once bought" } ], "correctIndex": 0, "explanation": "Whole life premiums run 10 to 20 times higher than term while delivering only 1% to 3% returns, so investing the savings outperforms it.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1jhoi1514sqf3n" }, { "id": "ot-pinnacle-point-def", "shape": "mcq", "tags": [ "pinnacle-point", "baby-step-7" ], "prompt": { "modality": "text", "value": "What does Ramsey call the point where investment income exceeds income from your job?" }, "options": [ { "modality": "text", "value": "The Pinnacle Point" }, { "modality": "text", "value": "The Breakeven Point" }, { "modality": "text", "value": "The Freedom Point" }, { "modality": "text", "value": "The Independence Threshold" } ], "correctIndex": 0, "explanation": "The Pinnacle Point is the milestone where annual investment returns surpass the income earned from full-time employment.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1ghmlhucz3zoo" }, { "id": "ot-pinnacle-three-purposes", "shape": "mcq", "tags": [ "radical-generosity", "baby-step-7" ], "prompt": { "modality": "text", "value": "Which of these is NOT one of Ramsey's three legitimate purposes for wealth?" }, "options": [ { "modality": "text", "value": "Hoarding" }, { "modality": "text", "value": "Fun" }, { "modality": "text", "value": "Investing / Growth" }, { "modality": "text", "value": "Giving" } ], "correctIndex": 0, "explanation": "Ramsey lists Fun, Investing/Growth, and Giving as wealth's three purposes; selfishly hoarding wealth is explicitly rejected.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "ke4tsuurla24" }, { "id": "ot-pinnacle-portfolio-return", "shape": "mcq", "tags": [ "pinnacle-point", "investing" ], "prompt": { "modality": "text", "value": "In Ramsey's example, a $1,000,000 portfolio growing at 10% generates how much in annual returns?" }, "options": [ { "modality": "text", "value": "$100,000" }, { "modality": "text", "value": "$80,000" }, { "modality": "text", "value": "$50,000" }, { "modality": "text", "value": "$120,000" } ], "correctIndex": 0, "explanation": "A $1,000,000 portfolio growing at 10% generates $100,000 per year, more than the example worker's $80,000 salary.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "nzfwxthgm55v" }, { "id": "ot-pinnacle-proverbs-verse", "shape": "mcq", "tags": [ "legacy-wealth", "proverbs" ], "prompt": { "modality": "text", "value": "Which Bible verse does Ramsey cite for leaving an inheritance to children's children?" }, "options": [ { "modality": "text", "value": "Proverbs 13:22" }, { "modality": "text", "value": "Proverbs 22:6" }, { "modality": "text", "value": "Proverbs 3:9" }, { "modality": "text", "value": "Proverbs 6:6" } ], "correctIndex": 0, "explanation": "Ramsey cites Proverbs 13:22, 'A good man leaves an inheritance to his children's children,' as the basis for legacy wealth.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1jw7tg61j82dn8" }, { "id": "ot-pinnacle-character-before-capital", "shape": "mcq", "tags": [ "legacy-wealth", "character-before-capital" ], "prompt": { "modality": "text", "value": "According to Ramsey, what must be taught to heirs before transferring substantial wealth to them?" }, "options": [ { "modality": "text", "value": "Work ethic, budgeting, saving, and giving" }, { "modality": "text", "value": "Frugality, patience, and self-control" }, { "modality": "text", "value": "Aggressive investing and risk-taking" }, { "modality": "text", "value": "Tax avoidance and asset protection" } ], "correctIndex": 0, "explanation": "Ramsey warns that passing wealth to heirs without first teaching work ethic, budgeting, saving, and giving guarantees their financial destruction.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "pg67er15fu4pt" }, { "id": "ot-debt-snowball-order", "shape": "mcq", "tags": [ "debt-snowball", "baby-step-2" ], "prompt": { "modality": "text", "value": "In the Debt Snowball method, how are non-mortgage debts ordered for payoff?" }, "options": [ { "modality": "text", "value": "Smallest balance to largest" }, { "modality": "text", "value": "Highest interest rate to lowest" }, { "modality": "text", "value": "Largest balance to smallest" }, { "modality": "text", "value": "Newest debt to oldest" } ], "correctIndex": 0, "explanation": "The Debt Snowball lists debts smallest to largest balance, ignoring interest rate, to build fast psychological wins.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "cf8ch91i6bfy7" }, { "id": "ot-debt-snowball-tiebreak", "shape": "mcq", "tags": [ "debt-snowball", "tie-break" ], "prompt": { "modality": "text", "value": "If two debts in the Debt Snowball list have identical balances, which is listed first?" }, "options": [ { "modality": "text", "value": "The one with the higher interest rate" }, { "modality": "text", "value": "The one with the lower interest rate" }, { "modality": "text", "value": "The oldest debt" }, { "modality": "text", "value": "The one with the highest minimum payment" } ], "correctIndex": 0, "explanation": "The tie-breaking rule places the debt with the higher interest rate first when balances are equal.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "kzusxr19v7akl" }, { "id": "ot-gazelle-not-intensity", "shape": "mcq", "tags": [ "gazelle-intensity", "baby-step-2" ], "prompt": { "modality": "text", "value": "Which of these is NOT part of the 'gazelle intensity' posture during Baby Step 2?" }, "options": [ { "modality": "text", "value": "Continuing full 401(k) contributions" }, { "modality": "text", "value": "Halting restaurant dining entirely" }, { "modality": "text", "value": "Selling vehicles worth over half of income" }, { "modality": "text", "value": "Halting vacations and new clothing purchases" } ], "correctIndex": 0, "explanation": "Gazelle intensity requires pausing retirement contributions, not continuing them, to direct all cash flow to debt payoff.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "166cfr3awv3px" }, { "id": "ot-debt-snowball-apply", "shape": "mcq", "tags": [ "debt-snowball", "application" ], "prompt": { "modality": "text", "value": "A household owes $500, $1,200, and $3,000 on three debts at different interest rates. Under the Debt Snowball, which debt gets all extra cash first?" }, "options": [ { "modality": "text", "value": "The smallest balance" }, { "modality": "text", "value": "The highest-interest balance" }, { "modality": "text", "value": "The largest balance" }, { "modality": "text", "value": "Split evenly across all three" } ], "correctIndex": 0, "explanation": "The Debt Snowball attacks the smallest balance first regardless of interest rate, so the household throws every spare dollar at the $500 debt before the others.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "16to6ab7g6u7l" }, { "id": "ot-debt-snowball-timeframe", "shape": "mcq", "tags": [ "baby-step-2", "timeframe" ], "prompt": { "modality": "text", "value": "What target timeframe does Baby Step 2 aim for to eliminate all non-mortgage debt?" }, "options": [ { "modality": "text", "value": "18 to 24 months" }, { "modality": "text", "value": "6 to 12 months" }, { "modality": "text", "value": "24 to 36 months" }, { "modality": "text", "value": "12 to 18 months" } ], "correctIndex": 0, "explanation": "Baby Step 2 is engineered to be completed within an aggressive target of 18 to 24 months.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1m3mzbu1ig2tj4" }, { "id": "ot-babystep3-3month", "shape": "mcq", "tags": [ "baby-step-3", "emergency-fund" ], "prompt": { "modality": "text", "value": "A dual-income household with two stable, high-demand salaries should save how many months of expenses in Baby Step 3?" }, "options": [ { "modality": "text", "value": "3 months" }, { "modality": "text", "value": "6 months" }, { "modality": "text", "value": "12 months" }, { "modality": "text", "value": "1 month" } ], "correctIndex": 0, "explanation": "Stable dual-income households with low risk of simultaneous job loss need only 3 months of basic living expenses.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1l2lwqrw3q1d" }, { "id": "ot-babystep3-6month", "shape": "mcq", "tags": [ "baby-step-3", "emergency-fund" ], "prompt": { "modality": "text", "value": "Which household profile needs only a 3-month emergency fund rather than 6?" }, "options": [ { "modality": "text", "value": "Dual-income household with stable, high-demand careers" }, { "modality": "text", "value": "Self-employed business owner" }, { "modality": "text", "value": "Commissioned sales professional" }, { "modality": "text", "value": "Seasonal contractor" } ], "correctIndex": 0, "explanation": "Only stable dual-income households qualify for 3 months; self-employed, commissioned, and seasonal earners face volatile income and need 6 months.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "145by86sq4y5w" }, { "id": "ot-fourwalls-not", "shape": "mcq", "tags": [ "four-walls", "baby-step-3" ], "prompt": { "modality": "text", "value": "Which expense is NOT part of 'The Four Walls' used to size the emergency fund?" }, "options": [ { "modality": "text", "value": "Entertainment subscriptions" }, { "modality": "text", "value": "Basic shelter" }, { "modality": "text", "value": "Essential transportation" }, { "modality": "text", "value": "Utilities" } ], "correctIndex": 0, "explanation": "The Four Walls cover food, utilities, shelter, transportation, insurance, and prescriptions, not discretionary spending like entertainment.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1ao7nx7s543u1" }, { "id": "ot-babystep3-transmission", "shape": "mcq", "tags": [ "baby-step-3", "application" ], "prompt": { "modality": "text", "value": "A fully funded household faces a $3,500 transmission repair. How do they pay for it?" }, "options": [ { "modality": "text", "value": "Money market account withdrawal" }, { "modality": "text", "value": "New credit card charge" }, { "modality": "text", "value": "401(k) hardship loan" }, { "modality": "text", "value": "Personal installment loan" } ], "correctIndex": 0, "explanation": "A fully funded emergency reserve lets the household pay cash from the money market account with zero new debt.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "j6gyhj6skzet" }, { "id": "ot-babystep3-storage", "shape": "mcq", "tags": [ "baby-step-3", "mma" ], "prompt": { "modality": "text", "value": "Where should the fully funded emergency fund be kept?" }, "options": [ { "modality": "text", "value": "Money Market Account (MMA)" }, { "modality": "text", "value": "Certificate of Deposit (CD)" }, { "modality": "text", "value": "Growth stock mutual fund" }, { "modality": "text", "value": "Primary checking account" } ], "correctIndex": 0, "explanation": "The emergency fund belongs in a liquid, FDIC-insured money market account, separate from checking and never in equities or penalty-bound CDs.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1556u8dzqngi" }, { "id": "ot-zbb-1", "shape": "mcq", "tags": [ "budgeting", "zero-based-budget" ], "prompt": { "modality": "text", "value": "Which equation defines Dave Ramsey's Zero-Based Budget?" }, "options": [ { "modality": "text", "value": "Net income minus total outgo equals zero" }, { "modality": "text", "value": "Gross income minus taxes equals net income" }, { "modality": "text", "value": "Assets minus liabilities equals net worth" }, { "modality": "text", "value": "Net income minus savings equals debt payment" } ], "correctIndex": 0, "explanation": "A Zero-Based Budget assigns every dollar a job so net income minus total outgo equals exactly zero, unlike other general financial formulas.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "zcrq5skij3bu" }, { "id": "ot-zbb-2", "shape": "mcq", "tags": [ "budgeting", "cash-envelope" ], "prompt": { "modality": "text", "value": "Which budgeting method splits withdrawn paycheck cash into separate labeled paper containers by spending category?" }, "options": [ { "modality": "text", "value": "Cash Envelope System" }, { "modality": "text", "value": "EveryDollar Application" }, { "modality": "text", "value": "Sinking Fund" }, { "modality": "text", "value": "Irregular Income Planning Sheet" } ], "correctIndex": 0, "explanation": "The Cash Envelope System divides withdrawn paper cash into labeled envelopes for variable categories like groceries, unlike the digital or savings-based tools.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1r6bq15181owa3" }, { "id": "ot-zbb-3", "shape": "mcq", "tags": [ "budgeting", "everydollar" ], "prompt": { "modality": "text", "value": "What is Ramsey Solutions' official digital zero-based budgeting tool called?" }, "options": [ { "modality": "text", "value": "EveryDollar" }, { "modality": "text", "value": "Cash Envelope System" }, { "modality": "text", "value": "Irregular Income Planning Sheet" }, { "modality": "text", "value": "Sinking Fund" } ], "correctIndex": 0, "explanation": "EveryDollar is the digital app that tracks income and expenses in real time against a zero-based budget.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "btpz101biu2eu" }, { "id": "ot-zbb-4", "shape": "mcq", "tags": [ "budgeting", "blow-money" ], "prompt": { "modality": "text", "value": "A couple agrees each spouse gets cash monthly to spend freely with no receipts required. What is this called?" }, "options": [ { "modality": "text", "value": "Blow money" }, { "modality": "text", "value": "Sinking fund" }, { "modality": "text", "value": "Cash discount" }, { "modality": "text", "value": "Four Walls" } ], "correctIndex": 0, "explanation": "Blow money is a small, unaccounted personal cash allowance for each spouse within the unified budget.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "vux9nm1aq8r2w" }, { "id": "ot-zbb-5", "shape": "mcq", "tags": [ "budgeting", "habit-formation" ], "prompt": { "modality": "text", "value": "How many consecutive monthly budget cycles does it typically take a household to master zero-based budgeting?" }, "options": [ { "modality": "text", "value": "Three" }, { "modality": "text", "value": "One" }, { "modality": "text", "value": "Six" }, { "modality": "text", "value": "Twelve" } ], "correctIndex": 0, "explanation": "Ramsey notes the first month feels awkward, the second improves, and by the third month households reach operational rhythm.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "t3w891tmjndb" }, { "id": "ot-sink-1", "shape": "mcq", "tags": [ "sinking-fund", "budgeting" ], "prompt": { "modality": "text", "value": "Which term describes saving one-twelfth of an annual expense every month to prepare for it?" }, "options": [ { "modality": "text", "value": "Sinking fund" }, { "modality": "text", "value": "Emergency fund" }, { "modality": "text", "value": "Irregular income planning sheet" }, { "modality": "text", "value": "Cash discount strategy" } ], "correctIndex": 0, "explanation": "A sinking fund divides a predictable annual expense by twelve and saves that amount monthly, unlike the emergency fund reserved for true crises.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "16jr8w5o2v1cf" }, { "id": "ot-sink-2", "shape": "mcq", "tags": [ "irregular-income", "budgeting" ], "prompt": { "modality": "text", "value": "A commissioned salesperson's paycheck total changes every month. Which budgeting tool funds expenses in strict priority order as cash comes in?" }, "options": [ { "modality": "text", "value": "Irregular Income Planning Sheet" }, { "modality": "text", "value": "Zero-Based Budget" }, { "modality": "text", "value": "Cash Envelope System" }, { "modality": "text", "value": "Sinking Fund" } ], "correctIndex": 0, "explanation": "The Irregular Income Planning Sheet lists expenses by priority and funds them sequentially as variable income arrives during the month.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1mjlf391im2jdb" }, { "id": "ot-sink-3", "shape": "mcq", "tags": [ "sinking-fund", "holiday-planning" ], "prompt": { "modality": "text", "value": "What fraction of the estimated holiday budget does Ramsey recommend saving each month starting in January?" }, "options": [ { "modality": "text", "value": "One-twelfth" }, { "modality": "text", "value": "One-sixth" }, { "modality": "text", "value": "One-fourth" }, { "modality": "text", "value": "One-third" } ], "correctIndex": 0, "explanation": "Since Christmas arrives every December, Ramsey has households save one-twelfth of the estimated cost each month starting in January.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "g75b9wooa89i" }, { "id": "ot-sink-4", "shape": "mcq", "tags": [ "depreciation", "car-purchase" ], "prompt": { "modality": "text", "value": "Approximately how much of a new car's value is lost to depreciation in its first three years?" }, "options": [ { "modality": "text", "value": "40% to 60%" }, { "modality": "text", "value": "10% to 20%" }, { "modality": "text", "value": "70% to 80%" }, { "modality": "text", "value": "25% to 35%" } ], "correctIndex": 0, "explanation": "The guide states leasing exposes you to \"the vehicle's steepest depreciation curve (40% to 60% of value lost in the first three years),\" which is why Ramsey favors buying used cars with cash.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "1oa3jgjhp20bt" }, { "id": "ot-sink-5", "shape": "mcq", "tags": [ "sinking-fund", "emergency-fund" ], "prompt": { "modality": "text", "value": "Which expense should be paid from a Sinking Fund rather than the Emergency Fund?" }, "options": [ { "modality": "text", "value": "Annual property tax bill" }, { "modality": "text", "value": "Sudden job loss" }, { "modality": "text", "value": "Emergency room visit" }, { "modality": "text", "value": "Major home flood damage" } ], "correctIndex": 0, "explanation": "Sinking funds cover predictable, planned expenses like annual property taxes, while true unforeseen crises like job loss or flood damage draw from the emergency fund.", "source": { "label": "The Total Money Makeover β€” Objective Test" }, "uid": "ysguu54a9hdb" } ] }