Benefits of Budgeting
A written plan for giving, saving and spending is:
Budget
______ is money received for work, as a gift or through investments.
Income
Online budgeting apps are more effective than budgeting with pen and paper.
False.
Money flows two ways: in and out. A budget simply shows you what your _____ is (the money coming in) and what your _______ are (the money going out) for a set period of time.
Income, expenses
Dave Ramsey suggests to prioritize _____ first in your budget. What percentage does he suggest to set aside first for this?
Giving, 10%
What is a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero?
Zero Based Budget
Only ____% of Americans budget BUT 95% of Americans say budgeting is important
35%
Describe the difference between a fixed expense and variable expense. Give an example of each.
Fixed - remains the same month to month (rent)
Variable - fluctuates month to month (gas)
What's an example of an unexpected expense? How would you adjust your budget to ensure you don't overspend that month?
Spending more money that expected on groceries. You could then move allotted $ to the grocery category and choose to eat out at restaurants fewer times that month.
__________ expense: Expense for things you don’t need
Discretionary
Describe an intermittent expense.
An expense that comes up at certain times of the year. Car inspection payment, purchasing student's yearbook, car insurance premium paid 4x a year.
What are the Four Walls?
Four Walls: food, utilities, shelter, and transportation
Your biggest wealth building tool is your ____ - and the best way to make the most of your ______ is to create and stick to a monthly budget.
Income
Name 2 components of your 4 part budget.
Saving, income, giving, spending
What is a cash flow statement and what do they show you? How can they help you make adjustments for the next month?
A record that summarizes all of the income and outgo (spending) over a certain time period. It can show me where I am spending unnecessarily in order to create new categories next month or adjust allotted amount for each category.