Budget Basics
Main purpose of creating a budget
What is a spending plan
This type of expense remains the same each month
What is a fixed expense
According to Dave Ramsey, this should be the first priority in a budget
What is Giving
Rent, transportation, food, utilities are considered
What is a need
The four sections of a budget
What is income, saving, spending and giving
How often should you create a new budget
Utility bills are an example of this type of expense that changes monthly
What is a variable expense
The amount that should be set aside for an emergency fund?
What is $500
Eating out, attending a homecoming dance, concert tickets
What is wants
Mortgage payment, Gym Membership, Car Insurance
What is a fixed expense
This component of a budget typically includes earnings from a job
What is income
Movie tickets or dining out would fall under this category for "non-essential" expenses
What are discretionary expenses
What percentage of our income should we set aside saving?
What is 20%
Gifts, allowances, side gigs are all considered
What is income
You need to look at these two expenses on your budget to see where you can cut costs
What is Fixed and Variable?
This budgeting rule suggest 50% needs, 30% wants, 20% debt/savings
Income received before taxes are taken out
What is gross pay
Budgeting helps you keep track of your money and set goals. What do most students want to buy when they get their license?
What is a car
Income after taxes or deductions have been taken out
What is Net Pay/Net Income
Medical expenses and appliances breaking are not only variable expenses but can also be considered
What is unexpected expenses
Expenses that occur sometimes...
What is intermittent (periodic)
Income that is not the same every month
What is irregular income
Cancelling your cell phone plan would reduce what expenses?
What are fixed expenses?
Another word for income
What is Earnings
In the 50/30/20 budgeting rule, what percentage is allocated for needs?
What is 50%?