Budgeting Without Delusion
This is the amount of money you take home after taxes, not the number on the job posting that got you excited.
What is net income?
This is the fee you pay for borrowing money.
What is interest?
This kind of account is designed for everyday spending and transactions.
What is a checking account?
When war or conflict interrupts the movement of goods, economists call it a disruption in this.
What is the supply chain?
This is the exchange of goods and services between countries.
hat is international trade?
Rent, car payments, and insurance usually belong in this type of expense category.
What are fixed expenses?
This three-digit number helps lenders decide whether to trust you with borrowed money.
What is a credit score?
This account usually earns more interest than checking and is commonly used for short-term savings.
What is a savings account?
If conflict shuts down oil production in a major region, oil prices usually fall.
What is they increase?
This occurs when prices rise across an economy over time, often made worse by conflict and supply shocks.
What is inflation?
Eating out, entertainment, and impulse purchases from “just looking” usually fall into this category.
What are variable expenses?
This happens when you fail to repay a loan as agreed.
What is default?
When your money earns returns, and then those returns earn returns too, that is this.
What is compound interest?
When a country blocks imports from another country for political or military reasons, it may impose these.
What are sanctions?
When a government places a tax on imported goods, it is called this.
What is a tariff?
This budgeting rule often divides income into needs, wants, and savings using percentages of 50, 30, and 20.
What is the 50/30/20 budget rule?
Paying only this on a credit card balance keeps you from being late, but often keeps you in debt longer.
What is the minimum payment?
This type of investment represents partial ownership in a company.
What is a stock?
A company that starts sourcing from several countries instead of just one is using this risk-reduction strategy.
What is supply chain diversification?
If a nation imports far more than it exports, it may have this kind of trade balance.
What is a trade deficit?
If your monthly net income is $3,000 and your expenses are $2,650, this is your monthly surplus.
What is $350?
A borrower with a stronger credit score usually gets this kind of loan rate compared with a riskier borrower.
What is a lower interest rate?
This is the strategy of spreading investments across different assets to reduce risk.
What is diversification?
Conflict in a key shipping route can raise costs, delay deliveries, and reduce available goods, creating this market condition.
What is a shortage?
This term describes a situation in which rising production costs, often due to war or disrupted resources, push prices higher.
What is cost-push inflation?