Chapter 12 vocab

The difference between the budgeted amount and the actual amount spent

• Budget

• Budget Variance

Day to day financial activities necessary to get the most from your money

• Money Management

• Budgeting

The difference between the amount you own and what you owe

• Net Assets

• Net worth

Any items of value that you own, such as cash, real estate, personal possessions, and investments

• Equity

• Assets

Cash and items that can be quickly converted to cash

• Liquid assets

• Liquid goods

Property that has a money value or an exchangeable value

• real estate

• wealth

Things that you owe

• Liabilities

• Insolvency

Or net pay, is the amount of income left after taxes and other deductions are subtracted from your gross pay

• Discretionary income

• Take home pay

An expense that will be the same total amount regardless of changes in the amount of sales, production, or some other activity

• steady expense

• Fixed expense

Idea that investors should routinely and automatically put money into savings before spending on anything else

• pay yourself first

• periodic expense