2.1
What is a budget ?
A written plan for giving, saving, and spending.
What is income ?
Income is money received for work, as a gift, or through investments .
What is gross income ?
Gross income is the amount you earn before taxes and other payroll deductions .
What is a cash-flow statement ?
A cash-flow statement is a record that summarizes all of the income and outgo over a certain time period .
What is irregular income ?
Irregular income is income that comes in at different amounts or at different times, or both .
How many Americans budget ?
Only 35% of American budget .
What is a fixed expense ?
A fixed expense is expense that remains the same from month to month .
What is net income ?
Net income is what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay .
How much should the average household spend ?
The average household spends about $370 on groceries and $290 on dining out each month .
What is commission ?
Commission is earnings based on a percentage of the sales made .
How many Americans say budgeting is important ?
95% of Americans say budgeting is important .
What is a variable expense ?
A variable expense is expense that varies in dollar amount from month to month but that you can expect to have every month .
What is a zero-based budget ?
A zero-based budget is 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 .
What is the envelope system ?
The envelope system is a budgeting method where you allocate a set amount of cash for specific spending categories, place the cash in labeled envelopes, and use that cash until it runs out .
What is the first foundation ?
The first foundation is to save a $500 emergency fund .
What is budgeting used for ?
A budget shows you what your income is and what your expenses are for a set period of time .
What is intermittent expense ?
A intermittent expense is expense that occurs at various times throughout the year and tends to be in large, lump sums .
What are "The Four Walls" you should focus on ?
"The Four Walls" you should focus on are food, utilities, shelter, and transportation .
How many millionaires stick to their budgets ?
93% of millionaires stick to their budgets .
Whats the third step on how to stick with your budget ?
The third step is to check your social calendar, plan for events and celebrations that are coming up .
How much percent is head knowledge and how much is behavior ?
20% head knowledge and 80% behavior. .
What is a discretionary expense ?
A discretionary expense is expense for things you don’t need .
How much should a full emergency fund be ?
A full emergency fund should be 3-6 months of expenses .
What should you do if you go over your budget ?
You’ll have to cut back on how much you planned for one category to balance out what you overspent in another
What does the average family spend on clothing ?
The average family spends over $1,800 per year on clothing .