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Basics Beginner: Personal Finance Basics

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1.
To keep on track with your financial goals, you can measure them periodically.
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True. With a measurement system, you can adjust the way you are funding them.
2.
If you find it difficult to make a habit of diverting small amounts of money into savings, it may help most if you establish _______ first.
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A goal. Having a goal gives you some direction for saving.
3.
Diversification of your investments _______.
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Can reduce risk in the market. There is no cure for market risk; diversification can reduce risk, however, though it is not guaranteed to.
4.
The stated goal "I want to create an emergency fund" is sufficiently specific to start working toward.
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False. It is not specific enough; there is no way to tell how much time or money should be put into it.
5.
Which of the following questions are essential to setting financial goals?
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All of the above. All are essential to setting realistic, clear, and concise financial goals.