Terminology
This might come from several sources such as Financial aid, child support, employment, off jobs, pension etc.
What is income?
This type of budgeting method involves assigning percentages of income to different spending categories.
What is percentage-based budgeting?
The 20/4/10 rule is a guideline for bying these.
What are cars or vehicles?
To determine your net worth, you subtract these from your assets.
What are liabilities?
When creating a budget, these are two types of expenses you must categorize.
What are fixed and variable expenses?
What are things that you are boligated to pay for and whose prices typically don't change, such as rent/mortgage payments, cable, cell phone and car payments.
What are fixed expenses?
This type of budgeting philosophy focuses on giving every dollar a specific purpose.
What is the zero-based budgeting philosophy?
What is the 50/30/20 rule suggest dividing your budget into these three categories.
What are needs, wants, and savings?
This financial term describes the difference between your income and expenses.
What is a surplus or deficit?
This is the money you set aside for your years after work.
What is your retirement fund?
What are everyday items that your obligated to pay for, such as transportation, groceries, utilities and optional items like take out?
What are Variable expenses?
This system is a budgeting method that uses the method of placing cash in specific categories each pay period.
What is envelope system?
Financial advisors often recommend saving at least this percentage of your income.
What is 20%?
When you spend less than budgeted in one category, this budgeting term is used.
What is a budget surplus?
This is the term for a budget created for an entire year and not just month - to - month
What is an annual budget?
When calculating your budget, it is important to include these infrequent but significant expenses.
What are irregular or Periodic expenses?
This budgeting technique focuses on paying off the smallest debts first, regardless of interest rates.
What is the debt snowball method?
This rule is a strategy to avoid impulsive purchases by waiting this amount of time before buying.
What is the 30 day rule?
This term refers to money set aside for these unexpected situations.
What are emergencies?
This way of paying of debt is a reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment.
What is Snowball or avalanche method?
This financial document outlines expected income and expenses.
What is a budget?
This financial tool helps you visualize your budget and track expenses.
What is a budgeting app or software?
When working on your budget, what is the time frame to go back and review previous spending.
What is 3 - 6 months?
This term describes the act of assigning funds from one budget category to another.
What is reallocating or shifting funds?
What are three reasons to make a budget?
Control your money
Achieve life goals
Plan for emergencies