Budget
What is a Budget?
What is a plan for giving, saving, and spending?
Financial debts or obligations
What is Liability?
An expense you pay once a month, and it's the same amount every month
What is a fixed expense?
The first "bill" you pay every month is to your saving account.
What is Pay Yourself First?
Things that you own which have value
What is an Asset?
What is your biggest wealth building tool?
What is your income?
What a person earns before payroll taxes and other deductions.
What is gross income?
You pay your electric bill once a month
What is a variable expense?
You put specific amounts of your money into envelopes representing different budget categories.
What is an Envelope Budget?
Assets - Liabilitites
What is your Net Worth?
What are the three lifetime money principles?
What is to always have a budget, stay out of debt, and live on less than you make?
The amount of money the owner of an asset would be paid after selling it and any debts associated with the asset were paid off
What is Equity?
I purchased a yearbook
What is an intermittent expense?
50% of your income goes to your needs, 20% to your savings, and 30% to your wants
What is a 50/20/30 budget?
A goal that takes up to two years to reach
What are the 4 reasons a budget is important?
What is financial control, goal setting, planning for the future, and decision-making?
The granting of a loan and the creation of debt
What is Credit?
Expenses that are wants - not needs
What are discretionary expenses?
Every single dollar of your income is assigned to a specific expense, leaving you with a balance of $0
What is a Zero-Based Budget?
$500 saved for an emergency fund
What is the first foundation?
What are the four parts of a budget?
What is income, giving, saving, and spending?
A record that summarizes all of the income and spending over a certain time period.
What is a cash-flow statement?
A cellphone bill
What is a fixed expense?
The best type of budget is which one with how many categories
What is whichever works for you with no limit
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively