Income
income before taxes & other deductions
gross income
when your expenses exceed your income
deficit budget
system where higher income taxed at a higher rate
progressive tax
what you pay to have insurance
premium
a loan for a house
mortgage
income after taxes & other deductions (take-home pay)
net or disposable income
costs that change in amount from month to month
variable costs
form you fill out when you get a job that determines how much is withheld from you paycheck for taxes
W-4
covers damages that you cause to someone else's property in a car accident
property damage liability coverage
when the interest rate remains the same for the life of the loan
fixed-rate
earned in a way that requires little to no daily effort to maintain
passive income
saving 3-6 months worth of living expenses
emergency fund
form that tells you your income & how much was taken out for taxes in that year; used to file tax returns
W-2
health insurance plan that does not cover care received outside of their network
HMO Plan
the original sum of a loan, on which interest is paid
principal
income after needs have been paid for; $ left for wants & savings
discretionary income
50/30/20 Budgeting Rule
when everyone is taxed at the same rate (flat tax)
proportional tax
covers damage to your car that's caused by something other than an accident (hail, vandalism, fire, etc.)
comprehensive coverage
a lump sum of money, typically for a specific purpose/purchase, that will be repaid over months or years
installment loan