Budget Basics
What is a budget?
A plan for how you will spend and save money.
What is income?
Money you receive.
Car payment is fixed or variable?
fixed
Simple method to avoid impulse buying.
the 24-hour rule
Simple tool for tracking budget using paper.
What is Pen & Paper?
what are the two main components of a budget?
Income vs Expenses
What are expenses?
Money you spend on things like rent, groceries, & bills.
utility bill fixed or variable?
Variable
A way to "pay yourself"
Set aside small amounts of money
A free app to help track income & expenses.
What is Mint?
Why is a budget important?
it helps you manage your money & solidify your financial future.
Name an example of a fixed necessity expense?
Rent or mortgage.
What's a necessary variable expense?
Groceries
Transportation
Medical Bills
How can cooking help you save money?
What's the purpose of the envelope system?
To allocate cash for different expenses and stick to your budget.
What is the simple budgeting equation>
Income-Expenses=Savings or debt
What type of expense are groceries?
What is the defining characteristic of a fixed expense?
Stays the same every month.
What should you do with unused subscriptions?
Cancel them.
What's one way to track spending without an app or computer?
Keep reciepts
What should your first step be to creating a budget?
Become aware of fixed income & expenses.
Why is it important to know income and expenses?
To ensure your expenses don't exceed your income.
How can knowing the difference between fixed and variable expenses help you budget?
It helps you predict and manage money.
How to save on groceries?
Go in with a list & stick to that plan and budget.
How can you use a spreadsheet to help budget?
By keeping track of & listing your income and expenses in an organized way.