Budgeting
What is a budget?
What is a written plan for giving, saving, and spending.
What are the Five Foundations?
What is saving a 500$ emergency fund, get out and stay out of debt, pay cash for your car, pay cash for college, and build wealth and give.
What 4 Catagorys is a budget often seprated into?
What is Fixed, variable, intermittent, and discretionary.
What is Personal Finance
What is ones practice of manging money and ones financial goals they want to achieve.
Income is usually deducted by what?
What is tax's and other previous things you have set aside that money goes to such as a retirement fund.
What percent of Americans say a budget is needed and actually do a budget?
What is 35%
The Five Foundations are best paired with what type of budget?
What Catagorys things often are the first thing to go when there's not enough money to divide?
What is the discrentionary catagory.
What is the famous Dave Ramsey quote about handling money?
What is if you don't manage your money, it will always manage you.
What is Net Income
What is your liabilities minus your assets total.
What are the four main parts of a budget?
What is income, spending, giving, and saving
The Five Foundations promote what kind of security?
What is long term security.
Should you save some money outside of the catagorys of the budget?
What is no every money that comes in should go into a catagory.
What is the difference between the definition of financially literacy and Personal Finance?
What is Personal Finance is determines how to budget and create financial goals, while Finanical Literacy is the knowledge and skill nescessary to create goals.
Why is knowing your income important?
What is because it helps you set up your goals accurately based on how much you make and where you need to save or not save as much.
How much should you set aside for those less fortunate then you?
What is 10%.
Why is it important to use the Five Foundations?
What is the Five Foundations helps you avoid debt and payment you would otherwise have to pay for the rest of your life and it provides long term security financially.
Is there a limit on how many catagorys you can have in a budget?
What is no, it is your personal budget you get to choose.
Budgeting actually creates what type of freedom?
What is Financial freedom
What is gross income?
What is the money you receive before the deductions are taken out such as again retirement or savings.
What is a zero based budget and why does it prove to be the most effective?
What is a budget where there is no money left to chance and its divided into Catagorys. And its important because it keeps you accountable and leaves nothing to chance.
What are some more non vehicle options should someone who follows the Five Foundations buy with cash.
What is a boat, computer, and etc.
What is one example of a discretionary item.
What is movies, streaming services, gym membership, gifts, music, music tickets, etc.
What is the definition of income?
What is any money that comes in before tax roll deductions.
How do you know if you have a study income?
What is you are able to plan your financial future without worrying about debt and the amount of money you receive is usually about the same amount everytime.