Ramsey Chapters 1-5

Front

What does a budget help you identify?

Back

A budget helps you identify if you are overspending in an area.

Front

What types of expenses should be included in a monthly budget?

Back

A monthly budget should include variable expenses, discretionary expenses, and fixed expenses.

Front

What is a poor strategy for getting out of debt?

Back

Borrowing money from your parents to pay for the debt is not a good idea.

Front

What factors can affect your credit score?

Back

Factors that affect a credit score include type of debt, new debt, and duration of debt.

Front

What is the number-one cause of divorce in North America?

Back

The number-one cause of divorce in North America is stress and disagreement over money.

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or mortgage payments.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as groceries or entertainment.

Front

What are discretionary expenses?

Back

Discretionary expenses are non-essential costs that can be adjusted or eliminated, such as dining out or hobbies.

Front

How can creating a budget impact your financial health?

Back

Creating a budget can help you manage your spending, save money, and reduce financial stress.

Front

What is the importance of tracking expenses?

Back

Tracking expenses helps you understand where your money is going and identify areas for improvement.