Budgeting
A plan to spend your money to meet your wants and needs?
What is A budget?
Any items of value that you own
What are Assets?
Total amount of tax owed
What is Tax Liability?
The original amount of money on deposit
What is principal?
(Revenue - Expenses)
What is net income?
A carefully planned and related to your goals, practical, flexible, and easily accessible.
What is a good budget
Debts that you owe
What are liabilities?
Tax on wages, salaries, and self-employed earnings
What is Income Tax?
The amount of income left after taxes and other deductions have been subtracted from your gross pay.
What is take-home pay?
(Total Assets - Total Liabilities)
What is total net worth?
A sheet that shows your financial health at a given point in time
What is a personal balance sheet?
3 examples of Assets
What are: Cash, Collectibles, House, Etc.?
An amount of money that can directly be subtracted from taxes you owe
What is Tax Credit?
type of financial value when owning a business or property to make passive income
What is Financial Freedom?
(Principal X Annual Interest Rate)
What is annual interest or Interest Earned for One Year?
The difference between the budgeted amount and the actual amount spent
What is Budget Variance?
3 examples of Liabilities
What are Bills, Loans, Credit Card Balance, Etc.?
A deduction from adjusted gross income for the taxpayer, the spouse, and qualified dependents
What is an exemption?
Monetary principles and beliefs that are important to us
What are financial values?
(Principal + Previously Earned Interest on 1st year) X Annual Interest Rate
What is Interest Earned for Second Year?
Setting your financial goals, estimating your income, budgeting for unexpected expenses, budgeting for variable expenses, recording what you spend, and reviewing spending and saving patterns
What are steps for preparing a budget?
Land and any structures that are on it
What is Real Estate?
A form that lets employers know how much tax to withhold from an employee's paycheck
What is a W-4?
Reducing your expenses, reducing your spending and your debts, increasing your savings, increasing your investments
What are ways to increase your net worth?
Annual interest on $5000 at a 20% annual interest rate
What is $1000?