What is The Fourth Foundation?
Build wealth and give.
Save a $500 emergency fund.
Pay cash for your car.
Pay cash for college.
The Fourth Foundation is a set of financial principles created by financial expert Chris Hogan to help individuals build wealth and achieve financial freedom. The four principles of The Fourth Foundation are:
1. Build wealth and give: Focus on increasing your income, reducing your debt, and investing wisely in order to build wealth for yourself and your family. Additionally, prioritize giving to others and supporting charitable causes.
2. Save a $500 emergency fund: Start by saving a small emergency fund of $500 to cover unexpected expenses and emergencies. This fund will help prevent you from going into debt when unexpected costs arise.
3. Pay cash for your car: Avoid taking out loans or financing your car purchase. Instead, save up and pay cash for a reliable used car that fits your budget. This will help you avoid car payments and high interest rates.
4. Pay cash for college: If you or your children are planning to attend college, try to save and pay cash for tuition and expenses instead of taking out student loans. This will help you graduate debt-free and set yourself up for financial success in the future.