2.1
a written plan for giving, saving, and spending
What is A Budget
Fixed Expense
What is an expense that remains the same from month to month?
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net income
Getting into the habit
The hardest part of tracking Expenses.
income that comes in at different amounts or at different times, or both
What is Irregular Income?
Behvaior:80
What percent of Personal Finance is head knowledge and what percent is Behavior.
Nonessential
What is another name/synonym for discretionary expenses
the amount you earn before taxes and other payroll deductions
To fail
When you budget/plan, what do you plan for
Maturity
What is the Ability to deal with Delayed Gratification
Money Flows in and Out
What ways does money flow?
Fixed, Variable, Discretionary, intermitten
What are the 4 Types of expenses
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
What is a Zero-Based Budget
370 On groceries and 290 on dining out each month.
How much does the average household spend on groceries?
Income
What is your biggest wealth building tool?
as many categories as you need.
How many categories should you break your budget into
Zero-Based Budget
What is the most effective way to Budget?
a record that summarizes all of the income and outgo (spending) over a certain time period
Cash-Flow Statement
95 percent of people think it is important, but only 35 percent of people actually do it.
What percent of People think Budgeting is important, but how many people actually do it.
groceries, restaurants, gas, entertainment, and personal.
What are The most common budget categories for using cash
When your income minus your expenses equals zero
You know you have completed a zero based budget
using cash for categories you tend to overspend on
What is the envelope System