Vocabulary
_______income is the amount you get paid before taxes
What is gross income
How many categories should you have in your budget?
What is no limit, as many as you want
What kind of money counts as income?
What is all money that you recieve, includes money from job, gifts, ect
This is the first step, or the first foundation to savings and building wealth
What is saving $500 for an emergency fund?
True or False: an irregular income does not allow for budgeting
What is false
________ income after taxes are taken out
What is net income
How often should you create a budget?
What is monthly
What should you do if you overspend in one category of your budget?
What is adjusting your budget in other categories
This is the second foundation to saving and building wealth.
What is getting out of debt?
A method of budgeting that uses envelopes labeled with specific budget categories for your cash
What is the envelope system
__________ is when you make money based on the percentage of total sales
What is commission
How many months does it usually take for your budget to start working as a budget should?
What is 3
The first priority in your budget should be _______
What is giving
According to Dave Ramsey, this is the third foundation.
What is paying cash for your car?
Going to the movies is an example of what type of expense?
what is discretionary OR variable
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 a zero based budget
Although the majority of Americans think budgeting is important, about _______of Americans actually use a budget.
What is 35%
____________ gives you control of your money and sets you up for financial success in the future.
What is budgeting
this is the major institution that Dave Ramsey also insists on paying cash for in your future.
What is College?
When is the right time to start creating and living by a budget?
what is Right now!
A record that summarizes all of the income and outgo (spending) over a certain time period
What is a cash flow statement
The four walls
What is food, utilities, shelter, and trasportation
Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of ________they have.
What is debt
This is the fifth foundation to personal finance in this chapter.
What is building wealth and giving?
________ your ________ gives you insight into whether you're sticking to the budget you set
What is tracking your expenses