lesson 1
A plan for how you spend your money
Money received for work, as a gift, or through investments
What is income?
a cash-flow plan that assigns an expense to every dollar of your income
What is a zero-based budget?
A record that summarizes all of the income and outgo (spending) over a certain time period
Cash-Flow Statement
Schedule time every month to work on the next month’s budget
What helps you get into the habit of budgeting?
35% of people
What percent of people actually stick to a budget?
Expense that remains the same from month to month
What is a fixed expense?
What a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
You need to put it to work and stick to it.
What do you do after creating a budget?
Have a friend hold you accountable and give you honest feedback to help you stay on track and meet the money goals you set
What does it not hurt to do?
Make the most out of your money
What does sticking to a budget do?
An expense that varies in dollar amount from month to month, but that you can expect to have every month
What is a variable expense?
The amount you earn before taxes and other payroll deductions
Gross Income
Income that comes in at different amounts or at different times, or both
What is irregular income?
Avoid talking about money—even when it’s hard
What can't you do in a marriage or close relationship?
Give you permission to spend
What does a budget do for you?
An expense that occurs at various times throughout the year and tends to be in large, lump sums
What is an intermittent expense?
Will always come first in your budget
Giving and Saving
Prioritize your expenses, starting with the most important, and work your way down to the least important
How should you budget with an irregular income?
Getting in the habit of budgeting down early in life will help you find—and keep—peace of mind
What's for spenders and savers alike?
Your income and spending into categories
What does a budget break down for you?
An expense for things you don’t need
What is a discretionary expense?
You should budget 15% of your gross income to invest for retirement.
When you have no other debt other than a mortgage, what percent should you budget of your gross income?
More than 15 million Americans
How many Americans are self-employed and work on straight income?
You get to live life on your terms instead of the bank’s terms
What do you get to do when you’re in control of your money?