Q: What differentiates the budget of a millionaire and someone of the middle class?
A: The main difference is that millionaires who splurge on their money, they go buy a yacht or a mansion but there are millionaires who are frugal with their money.
Q: If you start out with a bad credit score, is there anyway to improve this?
A: There are four main factors that affect your credit score: your credit score itself, your payment history, your use of credit, types of credit. These different factors play a role in how you can improve your credit score.
Q: For a high school student who doesn't have a job, what do you suggest we do now to start saving? (36:14)
A: Start with your allowance or money that you earn for gifts, and think of that as the money that you should be saving and not spending.
Q: What percentage of your savings should go Roth IRA? When we should start making a Roth IRA account?
A: These are long term goals you guys should have! There are regulations as to what you put into your Roth IRA, this is where your budget comes into play!. The rule of thumb is that it should be 20% from your savings account and your Roth IRA.
Q: Let's say you have a small amount of student or credit card debt, how would you take advantage of the interest rates being 0%?
A: The interest rates being 0% is what we refer to as a prime rate where the government charges us a certain flat rate and the banks/credit companies will add a margin and that is where they make money. When you're given a loan or a credit card they give you that margin and with the variable rate, so whenever the prime rate goes up and down, your interest is going to go up and down with it but they are fixed with the margin that they charge you.
Q: What is a margin rate?
A: It is the lenders profit from you.
