Budgeting basics
What is a Budget?
A financial plan
What is net income?
This is the amount of money you take home after taxes and deductions
What is an emergency fund?
Money set aside for unexpected expenses
What is a budget surplus?
When an income is greater than expenses, earning more than spending!
What is a fixed expense?
Same cost monthly (predictable costs that do not change based on production or sales volume)
What is gross income?
This is the total amount earned before taxes deductions?
What are short term financial goals (give time period)
Goals within 1 year typically!
Whats a financial Dashboard?
This is a tool that shows your income and expenses in categories using visual charts like pie graphs. It's a visual budget tool! E.g. Pocket guard, Every Dollar
What is a variable expense?
This expense can change from month to month, like groceries or entertainment.
What is a budget deficit?
This occurs when your expenses exceed your income during a given period.
What is 50/30/20 spending rule?
A budget percentage rule that deems 50% of spending on needs, 30% on wants, and 20% on savings!
What do you think is the greatest budgeting strategy?!
YAYYY look at you planning!