DAVE RAMSEY

THE MONEY
ANSWER
BOOK

QUICK ANSWERS
......................................................................

TO YOUR EVERYDAY FINANCIAL QUESTIONS

Copyright © 2004 by Dave Ramsey
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 WHAT COUNTS AS TAXABLE INCOME?
Among the things that typically count as income are:
Anything from your employer

Tips

Odd jobs

Interest

Profit on sale of stocks and other investments

Profit on sale of property

Alimony

Social Security

Some retirement savings

Settlements from lawsuits

Lottery or gambling winnings

Among the things that usually don’t count as income are:

Scholarships

Inherited money (the estate already paid taxes on this)

Life insurance payouts

 DOES THE NATIONAL ECONOMY REALLY AFFECT
MY PERSONAL ECONOMY?
The news keeps telling us about the unemployment rate and jobs being lost. We hear about economic
indicators that affect the stock market. When the government is concerned about the economy, it
lowers interest rates in an effort to keep people spending. Debt is rising
So what is the truth? News reporters don’t give the full truth. They bring the bleeding stories to us
to get the ratings. Hardly ever do you hear positive news as a lead story.
The truth is that all those economic factors do affect you, but what you do in your own home will
affect you far more.
The reality is that some people have lost jobs, but the beauty of the Baby Steps is that the system
works both in good times and in bad times. It is God’s and Grandma’s way of handling money. Debt–
free living on a plan (a budget), saving for emergencies, investing for long–term goals, living on less
than you make, and agreeing with your spouse on spending makes you prosperous—not tomorrow, but
over time. Getting rich quick doesn’t work.
Wake up—you’d better start to prosper now! This is the best economy ever. If you cannot build
wealth now, when can you build wealth? Get to work now!