Budgeting Basics
This is a plan that helps you manage income and expenses
What is a budget?
What is the money you take home after taxes and deductions?
What is net income?
What is your biggest wealth-building tool?
income
What are the three main priorities when creating a budget?
What is giving, saving and spending?
What is an example of a fixed expense?
Rent, mortgage, insurance, car payment
What’s it called when you earn money based on a percentage of sales?
commission
What type of budget makes sure every dollar has a purpose?
What is a zero-based budget?
What type of expense can change from month to month, like groceries or gas?
Variable expense
How does the envelope system help with budgeting?
It controls spending by allocating cash to different categories
This Helps identify spending habits and prevents overspending
What is tracking expenses?
What do you call an expense that isn’t needed but is fun to have?
discretionary expense
What’s the first thing you should include in your budget after listing income?
giving
Name two types of expenses that should be included in every budget.
What is fixed and variable?
What is a good budgeting strategy for people with irregular income?
Prioritize expenses from most important to least
What happens when you approach money with a generous spirit?
you become more grateful