Budgeting Basics
A written plan for giving, saving, and spending.
Budget
Money received for work, gifts, or investments.
Income
A record that summarizes income and spending over time.
Cash-Flow Statement
How many months does it take for a budget to start working?
Three
What you earn before taxes and deductions.
Gross Income
What percent of Americans actually use a budget?
35%
Expense that remains the same every month.
Fixed Expense
Method that uses envelopes labeled with cash categories.
Envelope System
The first priority in your budget should be…
Giving
What you take home after taxes and deductions.
Net Income
What are the “Four Walls”?
Food, utilities, shelter, transportation
Expense that varies monthly but repeats.
Variable Expense
Earnings based on a percentage of sales.
Commission
Nearly half of Americans feel stress about what?
Personal Debt
A plan that assigns every dollar of income to a category.
Zero-Based Budget
How often should you create a budget?
Monthly
Expense that happens irregularly, often in lump sums.
Intermittent Expense
Income that comes at different amounts or times.
Irregular Income
The main reason people don’t budget is lack of…
Behavior
Earnings based on a percentage of sales made.
Commission
A cash-flow plan where income minus expenses equals zero.
Zero-Based Budget
Expense for things you don’t need.
Discretionary Expense
What is the first thing you should look at to make your budget realistic?
Your calendar
What percent of Americans say budgeting is important, even if they don’t do it?
95%
A record that shows all money already spent and earned. →
Cash-Flow Statement