Managing and Balancing your Checking Account
Occurs when money is withdrawn and the available balance is below zero.
What is an overdraft?
This is the most expensive way to buy a car in Dave Ramsey's opinion. It is also when you pay money periodically on property over a period of time.
What is a lease?
These are the expenses that you really do not need and are up to you; they are non-essential.
What are discretionary expenses?
This is a written cash flow plan.
What is a budget?
This allows you to make payments to whomever you wish without writing a check and sending it in the mail.
What is an online bill pay?
Experian, TransUNion, and Equifax are examples of these kind of financial institutions.
What are credit bureaus?
An item that is bought without previous planning or consideration of the long-term effects.
What is an impulse buy?
These are the things that budgeting can do for you.
What is prevent overspending, making your money go further, removing guilt and shame, and making over spending less likely? (Points if you get one of two of these right).
This is where you record all of your transactions whenever you pay them.
What is your check register?
This is borrowing money and paying over time.
What is financing?
These are expenses that are the same month to month.
What are fixed expenses?
A series of envelopes that are divided into categories and are used to store cash for planned monthly expenses. It works great for managing money on things that do not have a fixed income.
What is an envelope system?
This is when you match your bank statement with your checkbook.
What is reconciling (or reconciliation)?
This is combining debts into one single payment.
What is debt consolidation?
This expense changes from time to time with cost. Groceries are considered this example.
What are variable expenses?
Double Jeopardy: This is a summary of all of your incomes and outgo over a certain period of time.
What is a cash flow statement?
Double Jeopardy: What are the three consequences of overdrawing from your banking account according to Dave Ramsey?
What is an overdraft fee, bounced check fee from the store, and stress from money mismanagement?
Double jeopardy: this is the value of your house over and above of what you owe.
What is equity?
This is the amount you pay annually, quarterly, or monthly for insurance.
What is a premium?
A cash flow plan that assigns every expense to every dollar of your income, wherein the total income minus the total expense equals zero. You must reconcile it with your account every month.
What is a zero-based budget?