Financial Fundamentals
This is the title of Session Twenty-Six of the Living in Balance program.
Money Management
Rent, car payments, and child support fall into this category because they are almost always the same amount each month.
Fixed monthly expenses
To find your total yearly cost for a fixed monthly expense, you must multiply the monthly expense by this number.
12
Jim works in Ohio as this type of skilled professional to earn his main income.
An auto mechanic
For most people, listing income simply means writing down the money made each week or month through a job or these other specific sources like Social Security or child support.
Other sources of income
These are the two major parts that make up Session Twenty-Six.
(1) Determining Your Financial Goals and (2) Preparing a Budget
Bills for utilities like electricity and gas are called this because they fluctuate depending on how much you use.
Variable monthly expenses
This is the term used to describe the positive mathematical difference when your total income is greater than your total expenses.
A surplus
This is Jim's exact total monthly income after taxes, combining his primary wages and food-delivery side job.
Three thousand three hundred fifteen dollars
The text notes that this specific type of event is very unlikely to happen, meaning you cannot rely on it to meet your financial goals.
Winning the lottery
The curriculum breaks down financial planning goals into these three specific timeframes.
Short-term, intermediate, and long-term goals
Expenses that occur only once or a few times a year, like local or state property taxes, fit this description.
Fixed yearly expenses
If your annual expenses total twenty-eight thousand dollars and your annual income is twenty-six thousand dollars, this is your total debt amount.
$2,000
Jim pays zero dollars per month for these two specific housing expenses because his landlord covers them.
Water and property taxes
This economic challenge, described as not having enough to make ends meet, is something many people may have experienced growing up.
Scarcity
These basic daily living skills include keeping track of cash, sticking to a budget, and reconciling this specific type of account.
A bank account
Holiday gifts, school clothes, and summer vacations are classified under this specific type of expense.
Seasonal expenses
To estimate how much money you should set aside this year for unexpected emergency expenses, the curriculum recommends evaluating this baseline.
What you had to pay last year
This is the single largest monthly item in Jim's miscellaneous expense category, costing him three hundred dollars per month as he attempts to pay it down quickly.
His credit card payment
This is the financial term used for major possessions that you own, such as a car, a house, or the money in your checking and savings accounts.
Assets
This national nonprofit network provides free or low-cost consumer counseling, budgeting education, and debt reduction assistance.
The National Foundation for Credit Counseling (NFCC)
Medical fees, unexpected car repairs, and replacing broken appliances belong to this category of unpredictable costs.
Emergency expenses
According to the math worksheet guidelines, if your income is less than your expenses, you must take one or both of these two financial actions.
Reducing your expenses and increasing your income
This is the precise amount of money Jim has left over at the end of the month when his bills are at their lowest point.
Two hundred eighty-seven dollars
In Jim's budget, this specific amount of money is what he earns per hour by driving for a food-delivery service to supplement his primary income.
$18