Budget

Front

What is the purpose of creating a personal budget?

Back

To set and reach financial goals.

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What are fixed expenses?

Back

Expenses that do not change from month to month, such as mortgage and car payments.

Front

What is the first step in creating a budget?

Back

Know your income.

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What is a 'Want' in budgeting terms?

Back

An expense that can be cut from your budget to save money.

Front

What is a 'Need' in budgeting terms?

Back

An expense that cannot be cut from your budget to save money.

Front

What are variable expenses?

Back

Expenses that can change from month to month, such as groceries and entertainment.

Front

What is zero-based budgeting?

Back

A budgeting method where every dollar of income is allocated to specific expenses, savings, or debt repayment.

Front

Why is it important to review your budget periodically?

Back

To ensure it reflects your current financial situation and goals.

Front

What is the difference between income and expenses?

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Income is money received, while expenses are money spent.

Front

What is the significance of tracking expenses?

Back

It helps identify spending habits and areas where savings can be made.