Rasmey Ch 2 Vocab

Income

• money received for work, as a gift, or from investments

• money spent on food or luxuries

• money received from just from the work you do

• money spent of necessity items

Fixed expense

• money spent that CHANGES from month to month

• money spent that STAYS the same from month to month

• money saved from month to month

• money saved over the year

Variable expense

• money spent that CHANGES from month to month

• money spent that STAYS the same from month to month

• money saved from moth to month

• money spent over the year

Intermittent Expense

• money spent that CHANGES from month to month

• money spent that STAYS the same from month to month

• money spent on things that happen throughout the year that do not happen often (doctor appointments, buying a car, etc.

• money spent on luxury items that you do not need

Discretionary Expense

• money spent that STAYS the same from month to month

• money spent that CHANGES from month to month

• money spent on luxury items you do not need

• money spent throughout the whole year

Net Income

• The amount of money you receive AFTER taxes and other fees are taken out

• The amount of money you receive BEFORE taxes and other fees are taken out

• The amount of money you pay to the government

• The amount of money you pay for benefits

Gross Income

• The amount of money you receive AFTER taxes and other fees are taken out

• The amount of money you receive BEFORE taxes and other fees are taken out

• The money you spend in an entire year

• The money you have to pay to the government

Zero-based budget

• When your assets and your liabilities come out to a perfect 0.

• A plan in which your gross income matches your net income

• plan that assigns an expense to some of the money of your income

• A plan that assigns an expense to every dollar of your income; the goal is for the total income minus the total expenses to equal zero

Irregular Income

• income that comes in at the same amounts on a regular basis

• income that comes in at different amounts or at different times, or both

• expenses for items that do not happen on a month to month basis

• Income only gained once a year

Commission

• Expense based on a percentage of the sales made

• Income based on how well you budget

• earnings based on a percentage of the sales made

• The president of the NFL