2.1
: a written plan for giving, saving, and spending
Budget
money received for work, as a gift, or through investme
Income
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
: income that comes in at different amounts or at different times, or both
Irregular Income
a person or organization that uses a product or service
Consumer
expense that remains the same, month to month
Fixed Expense
the amount you earn before taxes and other payroll deductions
Gross Income
earnings based on a percentage of the sales made
Commission
money owed to another person or company
Debt
expense that varies in dollar amount from month to month but that you can expect to have every month
Variable Expense
a cash flow plan that assigns an expense to every dollar of our income; the goal is for the total income minus the total expense to equal zero
Zero-Based budget
Statements summarize money that comes in and goes out over a period of time.
Businesses use these
Cash Flow Statement
: the additional cost a lender charges for borrowing their money
Interest
expense that occurs at various times throughout the year and tends to be in large, lump sums
Intermittent Expense
: a record that summarizes all of the income and outgo (spending) over a certain period of time
Cash Flow Statement
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Net Worth
: expense for things you don’t need
Discretionary (Nonessential) Expense
anything that is owned by an individual, including money in the bank or investments
Asset