Basics
Plan
What should be your first priority in your budget?
Giving
How many months does it usually take for your budget to start working as a budget should?
3 months.
Money flows in and out. A budget simply shows you what your ______ is and what your ________ are for a set period of time.
Income and expenses
Your _________ is any money you earn or receive as a gift.
Income
Commission is when you make money based on the percentage of __________.
Total sales
Although the majority of Americans think budgeting is important, about ____% of Americans actually use a budget.
35%
How many categories of expenses do you need in your budget? List 5 examples of expenses in your budget.
However many you need.
Giving, Saving, essentials, discretionary, intermittent, etc.
What is the envelope system?
Method of budgeting that uses envelopes labeled with a specific budget category for cash allotted to this category for the month.
What is your biggest wealth building tool?
Variable - fluctuates month to month. Gas
Fixed - same amount month to month. Rent
What is the most effective type of budget according to Dave Ramsey? Briefly describe.
Zero-based. Every dollar is assigned a job.
What priority are the Four Walls within your budget? What are the Four Walls?
Transportation, food, shelter, utilities. Comes after giving and saving.
What is irregular income? Give 2 examples.
Irregular income fluctuates month to month.
Commission based jobs (sales, etc.) season retail jobs, side hustles/hourly jobs.
What is the difference between gross and net income?
Gross - pre-tax
Net - take home pay after taxes