Budget 101
A summary of your planned expenses compared with your planned income for a pre-defined time period is...?
Working a job, consulting or owning a business are all examples of which type of income?
Earned income
A fee charged by the government based upon the estimated value of the home and land you own.
Property tax
In order to have the maximum impact on spending reduction, you should focus on the big...what?
Cost drivers
What are the four primary components of a budget?
Income sources, Expense items, Time horizon, savings/shortages.
Purchasing a car, paying for college, buying a home are all examples of what size of budget expense?
Large
Trading or selling stocks and buying and selling real estate are examples of which type of income?
Portfolio income
A fee imposed by the government based upon the amount of money a person makes.
Income tax
This is when you save money for something 6-12 months from now.
Short-term goal
What are the three different types of income?
Earned income, Portfolio income, Passive income.
Buying air pods, Air Jordans, or going on a weekend trip to the coast are examples of what size of budget expense?
Small
Rental icome, interest and royalties are examples of which income?
Passive income
Not technically an expense item, but a lot of people view it as one. Many call it "paying yourself first."
Saving
This is when you save money for something 2 or more years from now.
Long-term goal
What are the two different types of expenses?
Fixed expenses, variable expenses
What percentage of households have bills?
100%
Rent, car payment, loan payments, phone bill are examples of what type of expense?
Fixed expenses
Total income subtracted by total expenses resulting in a positive amount is a budget...what?
Surplus
Name one of three common area's people over-spend in their budget?
Groceries, Transportation, Entertainment
Short-term goal, long-term goal.
time horizon, surplus/shortfall calculations and expense items are three of the four basic elements in a budget, what is the fourth?
Income sources
Groceries, clothing, gas and income tax are examples of which type of expense?
Variable expenses
Total income subtracted by total expenses resulting in a negative amount is a budget...what?
Shortfall
If you are saving for something 10 months from now, and it costs you $2,000.00. How much do you need to save each month to reach your short term goal?
$200.00
If you are saving for something 10 years from now, and it costs you $20,000.00. How much do you need to save each month to reach your goal?
$166.66.