Budgeting
A type of budgeting that uses 30% of your income for your wants.
what is 50/30/20 rule?
The principal of an auto loan
What is the original amount of money borrowed to buy the car?
A budgeting method that leaves every dollar accounted for.
What is Zero-Based Budget?
The effect of a longer term
What is it lowers monthly payments but raises total interest paid?
A budgeting method that uses a envelope.
What is envelope budgeting?
The difference between Interest rate and APR
What is APR includes both the interest rate and lender fees?
You pay yourself first.
What is pay yourself budgeting?
This happens when you make a larger down payment
What is you borrow less money, reducing your total interest cost?
Define budgeting
Budgeting is the process of creating a financial plan to track and manage your income, expenses, and savings over a specific period. It acts as a roadmap, helping you control spending, avoid debt, and allocate resources efficiently to reach your financial goals.