EPF Test 3

Front

What is a trade-off?

Back

Choosing not to buy one thing in order to buy another

Front

What is the difference between needs and wants?

Back

Needs are essential for living, wants are things you can live without.

Front

What is a key part of reaching financial independence and building wealth? Options: Spending, Saving, Borrowing, Investing

Back

Saving

Front

What is a spending plan compared to?

Back

A financial GPS

Front

What is the definition of 'Income' in a spending plan?

Back

Money received, especially on a regular basis, for work or through investments

Front

What are "fixed expenses"?

Back

expenses that remain constant within your budget, such as a car payment or rent

Front

What is the first step in using the 50/30/20 budget rule?

Back

Calculate your total monthly income after taxes

Front

In the 50/30/20 budget rule, which category should you identify to manage your finances better? Options: Income, Spending bleeds, Savings, Investments

Back

Spending bleeds

Front

In the 50/30/20 budget rule, you should categorize your expenses into 'needs,' 'wants,' and '____.'

Back

Savings

Front

What percentage of the 50/30/20 budget rule is allocated to 'Needs'?

Back

50%