Budgeting Basics
This is the term that is used to outline income and expenses for a specific time period.
What is a budget
This is the term for the required payment you must make on a credit card/loan each month.
What is the minimum payment
A financial goal to buy a car in 6 months is considered this type of goal
What is a short-term goal
This type of expense remains the same each month, like rent or a car payment.
What is a fixed expense
What is the debt repayment strategy where you pay off the smallest balances first
What is the debt snowball method
SMART goals are specific, measurable, achievable, relevant, and T....
What is time-bound
This is the popular rule that suggests spending 50% on needs, 30% on wants, and 20% on savings.
What is the 50/30/20 rule
This three-digit number influences your ability to get loans and credit.
What is a credit score
This type of financial goal typically takes more than 5 years to achieve.
What is a long-term goal
This category of expenses can change month to month, like groceries or gas.
What are variable expenses
The percentage of your income that goes to paying off debt is known as this ratio.
What is the debt-to-income ratio
This step comes immediately after establihsing a financial goal.
What is creating an action plan
When your expenses exceed your income, you are operating at a _____.
What is a deficit
The interest that accumulates on both the principal and previously earned interest.
What is compound interest
A financial goal that can ensure you leave money behind for your heirs or charity, often achieved through life insurance, estate planning, or other wealth transfer strategies.
What is legacy planning