The benefits of budgeting
what is a budget
A plan for how you spend your money
what is discretionary?
expense for things you don't need
What is a zero-based budget?
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.
what is cash-flow statement?
A record that summarizes all of the income and outgo(spending) over a certain time period.
what is irregular income?
income that comes in at different amounts or at different times, or both
does budgeting provide freedom?
Yes, because you plan your spendings and every dollar has a place.
your ___ is any money you earn or receive as a gift.
income
what is Net income?
What a person earns after payroll taxes and other deductions are taken out; often referred to as take home pay.
The average household spends about ___ on groceries and ___on dining out each month
370$ and 290$
what is commission?
earnings based on a percentage of the sales made.
nearly ___% of students who complete a personal finance course create a monthly budget for their money.
80%
what is a fixed expense?
expense that remains the same from month to month.
gross income?
Don't spend ____ on things that don't matter at the expense of things that ___
money and do
now you know everything that goes into creating your own ____--- and how to stick to it so all that effort literally pays off!
zero-based budget
yet __% if those without debt say they never worry about their finances
33%
what is a variable expense?
expense that varies in dollar amount from month to month but that can expect to have every month.
what's the first and second steps of the five foundations
first- save a 500$ emergency fund.
second- get out and stay out of debt.
when you fail to __, you plan to fail and may have too much month left at the end of the ___.
plan and money
every dollar you ____ is a reflection of your values.
spend
20% and 80%
what is intermittent expense?
expense that occurs at various times throughout the year and tends to be in large, lump sums.
what's the five step of the five foundations
Build wealth and give.
__% of millionaires stick to their budget.
93$
The average American household spends more than __% of their annual income.
90%