term
a written plan for giving, saving, and spending
budget
is the first priority in your budget. This is where you decide how you’ll be generous with the money you have
giving
earnings based on a percentage of the sales made
commission
one
save a $500 emergency fund
make sure your saving and spending goals are realistic
money received for work, as a gift, or through investments
income
your next priority, is the part of your budget where you set aside money for your savings goals
saving
the amount you earn before taxes and other payroll deductions
gross income
two
get out and stay out of debt
think weekly
break a few budget categories into weekly amounts
expense that remains the same from month to month
fixed expense
includes everything else you spend money on, like bills, food, gas—you get the idea.
spending
zero-based budget
a cash-flow plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero
three
pay cash for your car
check your social calendar
plan for events and celebrations that are coming up
variable expense
expense that varies in dollar amount from month to month but that you can expect to have every month
% of millionaires that stick to their budgets
93%
net income
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
four
pay cash for college
learn to say no (or not now)
sometimes you just need to hold off until you have enough money to do it
intermittent expense
expense that occurs at various times throughout the year and tends to be in large, lump sums
on paper on purpose
making a new budget each month before the month begins
cash flow statement
a record that summarizes all of the income and outgo (spending) over a certain time period
five
build and give wealth
find a budget buddy
everyone can benefit from a friend who can keep you on track with your money goals