Personal finance chapter 3 short answer

Explain why making payments on a car is such a poor financial decision.

You will be paying more for the car in the long run because of interest on the loan

What are three questions to ask yourself before you spend your emergency fund?

Is it unexpected? Is it necessary? Is it urgent?

How did Jack end up with more money in his investment account by the time he retired, when Blake invested more money

Jack started investing 9 years earlier than Blake did. Jack put in less money and started earlier which gave compound growth time to do its thing.

What are the main differences between saving and investing?

A savings account is for money you will use within the next 5 years. If you're willing to leave that money alone for more than 5 years, then you can invest it.

Why should you avoid interest rate deals like zero-percent interest?

All zero-percent financing means is that you're signing up for a payment on something you can't afford. This still leads to debt.

How does Murphy's Law ("anything that can go wrong will go wrong") apply to saving money?

If you don't have a plan for your money, it will make emergency situations more stressful.

How does planning and saving for your future help you build wealth

It takes time and patience to build wealth so planning and saving earlier will help you become wealthier faster.