General Budgeting
How to calculate one's gross monthly income.
What is to divide the gross annual salary by 12.
The amount taken out by your employer.
What are Payroll Deductions?
Five common recurring expenses.
What are Rent, Utilities, Internet, Cellphone, Car Payment, Car Insurance, Health Insurance, Dental Insurance, Home Insurance, etc.
This investment strategy is considered a relatively "safe bet"--but pays an extremely low rate of return.
What is keeping your disposable income in a SAVINGS ACCOUNT?
The name of monthly income AFTER deductions.
What is net monthly income?
Net Monthly Income + ________ = Gross Monthly Income
What are Deductions?
One FIXED recurring expense.
What is Rent, etc.?
A non-profit organization that offers financial services.
What is a Credit Union?
The amount of money that an individual earns versus the amount of money a business earns (before costs).
What is Income vs Revenue?
When you pay for something EVERY MONTH.
What is a RECURRING EXPENSE?
Varies by "bracket" (hint: an automatic stabilizer).
What are Federal or State Income Taxes?
One VARIABLE recurring expense.
What is Electricity, Gas, etc.
This investment strategy involves buying an "IOU" that pays out with interest (a "yield") up until a certain date (called "maturity").
What purchasing a BOND.
Something spent as a consumer versus something spent as a business. (*Think Circular Flow)
What is Expense vs Cost?
If the value of your expenses is GREATER THAN the value of your net monthly income.
What is a BUDGET DEFICIT?
Will help your long-term savings but reduces your current cash flow.
What is a Retirement Contribution / Pension (i.e. 401k)?
Making up about 20-40% of net income, this is the most expensive recurring expense (generally speaking).
What is Rent / Mortgage Payments?
The act of setting some of your monthly income away for your 60s in an account that earns interest over time. Employers will often "match" what you set aside.
What is contributing to a private pension (401k, Roth IRA, etc.)?
What you put in the top left corner of your spreadsheet.
What is ANNUAL INCOME?
If the value of your expenses is LESS THAN the value of your net monthly income.
What is a BUDGET SURPLUS?
The MINIMUM number of recurring expenses one needs to have on their spreadsheet.
What is 20?
The name for the act of buying up foreign monies (Yen, Peso, etc.) to trade on the open market with the hope of turning a profit.
What is currency speculation on the FOREX market?
A financial investment that is "owned" vs a financial investment that is "owed".
What is ASSET vs LIABILITY?