Basic Definitions
A balancing finance sheet everyone should use to track your exact income and expenses during a set time frame.
Budget
Money you have left over when everything is balanced and paid.
Disposable income
Using this card to buy items when you have money in your account.
Debit card
Money the bank charges for borrowing.
Interest
The money you make before taxes.
Gross income
When your budget works out for that time frame.
Balanced budget
Credit card
The initial amount of money you borrow from the bank.
Principle
Actual income after taxes.
Net income
The meaning of " being in the RED" on your budget sheet.
Overspending / spend more than you make
You must include this money in your budget to ensure financial security.
savings
The length of your interest rate.
term
A type of loan you can use to buy or refinance a home.
Mortgage
Expenses that cost the same per month. ( ie Rent, car insurance)
Fixed expense
THe name of a bank loan that could be secured or unsecured, offered at different interest rates.
Line of credit
Amount of money you put down towards the purchase of your house. Usually a percentage of the price of the house.
Down payment
Interest rate
Expenses that cost different amounts each month ( ie. groceries etc.)
Variable expenses
Money that is loaned to you out of your account even if you do not have the money.
Overdraft ( protection)
The length of your total mortgage.
Amortization