Chapter 3 - Budgeting (Dave Ramsey)

Expenses that remain the same from month to month.

• Variable

• Fixed

Non-essential expenses.

• Discretionary

• Intermittent

Having more than one bank account is never a good idea since it can complicate money management.

• True

• False

The zero-based budget is the best method of budgeting because:

• This type of budget is less complicated than other types of budgets.

• A zero-based budget allows less money for wants

• Sticking to a zero-based budget requires less discipline.

• The zero-based budget ensures that every dollar you make is assigned a specific purpose.

ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing every month.

• True

• False

Groceries are a:

• Fixed expense

• Variable expense

• Discretionary expense

• Intermittent expense

If you write a zero-based budget every month, it is not necessary to reconcile your account.

• True

• False

Which of the following is something that a typical millionaire would do?

• Lease a new car

• Spend less money than he or she makes

• Replace things that are not broken

• Carry debt

Online bill pay allows you to make payments to whomever you wish without having to write a check and send it in the mail.

• True

• False

Which of the following account records would have the most current balance?

• Account balance statement from the ATM

• Your own account register

• Your monthly bank statement

• All of these records will have accurate account balances