Budgeting
What does paying yourself first mean?
Put money in savings before you spend money on anything else.
What is a short term goal?
A short-term goal is a goal that you want to complete in the near future, such as within the next week or the next month.
What is simple interest?
Simple interest is an interest charge that borrowers pay lenders for a loan.
What is an asset?
What you own (e.g., house)
What is a Pension?
A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life
What is the 50/20/30 budget?
You should spend up to 50% of your after tax income on needs, 20% to savings, 30% spent on entertainment.
What is a long term goal?
Long-term goals are objectives you want to achieve months or years down the road.
What is compound interest?
Compound interest is the interest you earn on interest.
What is a liability?
What you owe (e.g., mortgage)
What is State Income Tax?
State income tax is a tax levied by a state on the income of its residents.
What is a zero based budget?
Zero-based budgeting is a budgeting method that requires all expenses to be justified and approved in each new budget period, typically each year.
A thing that motivates or encourages one to do something.
What is an incentive?
How long would it take 6% interest to double?
12 years
What is the balance sheet equation?
Assets - Liabilities = Owners Equity or Net Worth
What is Federal Income Tax? (FIT)
Federal income tax (FIT) is withheld from employee earnings each payroll.
What is the envelope budget?
Method for visualizing and maintaining a flexible budget. The key idea is to prioritize cash income to meet separate categories of household expenses in physically separate envelopes.
What is savings + interest?
It would be the money you make + the percentage you make off the money in your savings account.
How long would it take to turn $10,000 to $20,000 with a 9% interest?
What is the net income?
= Revenues - Expenses
What is a 401(k)?
A 401(k) plan is a workplace retirement plan
What is budgeting?
A budget is a plan you write down to decide how you will spend your money each month.
What does S.M.A.R.T. goal stand for?
SMART stands for specific, measurable, achievable, relevant, and time-bound.
What is savings growth?
A growth savings account is a savings account that earns more interest than traditional savings accounts so your money grows faster.
What is revenue?
Income, especially when of a company or organization and of a substantial nature.
What is a Roth IRA?
A Roth IRA is an Individual Retirement Account to which you contribute after-tax dollars.