Budgeting

What is budgeting?

• A. Having money left over at the end of the month.

• B. A plan made in advance regarding the expenditure of money based on available income.

• C. The ability to pay your bills on time.

• D. Having enough money to go out to eat.

Which of the following is an example of a 'fixed expense'?

• (A) Food and groceries.

• (B) Mortgage or rent payments.

• (C) Charitable contributions.

• (D) Gas for your car.

The best way to start the budgeting process is to:

• (A) Start tracking all of the money you spend for a period of time, usually a month, so that you have an understand of where your money goes.

• (B) Automatically deposit money into a savings account with each paycheck.

• (C) Pay your credit card balance(s) in full each month.

• (D) Curbing your spending on incidental items such as dining out or entertainment.

Which of the following are the best tools for budgeting?

• (A) Personal financial management software.

• (B) A pencil and paper.

• (C) Computer spreadsheets.

• (D) Any of above. Whatever works best for you.

With a "rainy day" savings fund, you:

• (A) Set aside money for emergencies or essential spending in case of a loss of income.

• (B) Set aside money to use to treat yourself to something special when the weather turns bad.

• (C) Put a fixed amount of money into a savings account each time it rains.

• (D) Save up money to buy an umbrella and other types of rain gear.

Which is wants?

• Water

• Cloth

• Car

• Food

Which one is Needs?

• Food

• Big house

• Car

• LV bag

Which one is a good way to set goals?

• SWTAL

• WEALA

• SMART

• MATHS

When putting together a budget, which of the following items should you include?

• (A) Fixed Expenses.

• (B) Discretionary Expenses.

• (C) Savings

• (D) All of the above.

What is the most likely reason for a budget to fail?

• (A) Buying a pair of shoes you just couldn't resist.

• (B) Not using a personal financial planning website or software.

• (C) Failing to establish an emergency fund to account for unforeseen expenses.

• (D) Not making enough money.