What Kind of Spending?
Monthly rent for your apartment.
What is an essential expense?
This is money you pay to live somewhere you don't own
What is rent?
Money set aside for unexpected expenses.
What is an emergency fund?
Something specific that you plan to save money for.
What is a financial goal?
Money spent on optional activities, entertainment, or personal enjoyment.
What is discretionary spending?
Money placed in an emergency savings account.
What is a security expense?
This is money you pay to live somewhere you eventually will own
What is mortgage?
This type of expense helps protect you financially after an accident, illness, or loss.
What is insurance?
Saving for a car, education, or a home are examples of these.
What are long-term goals?
Restaurant meals, streaming services, and hobbies may belong in this category when they are part of your regular routine.
What are lifestyle expenses?
Saving money to attend college or job training.
What is a goal expense?
Electricity, heating, and water are examples of these household expenses.
What are utilities?
Paying more than the minimum amount on a credit card can help reduce this.
What is debt?
A goal that you expect to reach within one year is called this.
What is a short-term goal?
Buying a new phone because your current phone is unfashionable, even though it still works, is usually this type of spending.
What is discretionary spending?
Paying for a gym membership that you use regularly.
What is a lifestyle expense?
You earn $2,000 per month and spend $1,200 on essential expenses. This is the percentage of your income spent on essentials.
What is 60%
Putting in $100 a month to your investment account
What is a security expense?
A useful financial goal should include a specific amount and this.
What is a deadline or target date?
A person pays for a gym membership every month because exercise is an important part of their routine. They also buy expensive workout shoes they do not need. This is the best classification of the two expenses.
What are a lifestyle expense and a discretionary expense?
Buying concert tickets
What is a discretionary expense?
A worker earns $2,800 per month. Rent is $1,050, utilities are $180, groceries are $420, and basic transportation is $250. This is the percentage of income spent on essential expenses, rounded to the nearest whole percent.
What is 68%?
Your emergency fund contains $1,500, and your necessary monthly expenses are $750. This is how many months of expenses your fund can cover.
What are two months?
You want to save $4,500 for job training in 18 months. You have already saved $900. This is the amount you must save each month to reach your goal on time.
What is $200 per month?
A person has $360 available for lifestyle and discretionary spending. They want to spend $120 on a gym membership, $85 on restaurant meals, $60 on streaming and gaming subscriptions, and $140 on concert tickets. To stay within the $360 limit while keeping the expenses most connected to their regular routine, this purchase should be removed.
What are concert tickets?