basic budgeting
amount of money you expect after deductions
what is net income
Extra Money left over
what is a surplus
rent is a example of
what is a fixed expense
percent of money you should put into your savings account
what is 20%
changes that can affect your budget
What is marriage, divorce, having kids, age, family crisis
total amount of income earned before taxes and deductions
what is gross income
More money spent then earned
What is a deficit?
groceries are an example of
What are variable expenses
percent for needs
What is 50 %
step one in preparing your budget
what is setting your financial goals
a plan for saving and spending your money
what is a budget
the difference between money budgeted and spent
what is a budget variance
regular payments that do not vary
What are fixed expenses
percent for wants
30%
setting aside money each month can help you
what is build an emergency fund or reach long term goals
a budget surplus can be added to what expense.
what is your savings or emergency fund
A method to get the most from your money
what is money management
the easiest type of expense to cut
what are discretionary expenses
pie chart- housing percent
what is 33%
a budget should be flexible
what is adapting to goal changes or circumstances
creating a budget involves 3 main tasks- name them
what is estimating income, estimating expenses and bringing the two into balance
A loan repaid over time with a a set number of payments
what is a installment loan
another name for fun money
What are discretionary expenses
pie chart - money set aside for transportation
what is 18%
a successful budget should be
what is carefully planned, practical, flexible and easily accessible