2.1
a written plan for giving, saving, and spending
Budget
money received for work, as a gift, or through investments
What is a income
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
Zero-Based Budget
a record that summarizes all of the income and outgo (spending) over a certain time period
Cash-Flow statement
income that comes in at different amounts or at different times, or both
Irregular income
What are the two ways money flows
in and out
expense that varies in dollar amount from month to month but that you can expect to have every month
What is a variable expense
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
What is simpler then creating a budget
Tracking your expenses
earnings based on a percentage of the sales made
Commision
What percent of Americans say budgeting is important
95%
What are the four parts of a budget
Income, giving, saving, and spending
Whats the first foundation
Save a $500 emergency fund
getting into the habit
What will help getting the hang of budgeting
Practice
What is your biggest wealth-building tool
Your income
What are the four type of expenses
fixed expense, variable expense, Intermittent expenses, discretionary expense
Whats the fourth foundation
Pay cash for college
What is for instant budgeting accountability
Envelope system
Simply knowing you should budget is very different from what
Doing a budget
What percent of students who complete a personal finance course create a monthly budget for their money
Nearly 80%
What is your first priority in your budget
Giving
Whats the Foundations in order
Save a $500 dollar emergency fund, Get out and stay out of debt, Pay cash for your car, Pay cash for college, Build wealth and give
What is the first half of your budget
Creating it
How many Americans are self-employed or work on straight commission
15 million