Personal Finance Ch. 2 Budgets

This is a written cash flow plan.

• expenses

• budget

• savings

This is a copy of each check you write.

• A bank statement
• A check register
• carbon check

An envelope system is...

• a type of postal service for urgent documents
• a method of budgeting where you allocate cash into different envelopes for specific spending categories
• a software for organizing emails

An example of an impulse purchase is...

• Investing in a retirement fund
• Buying a candy bar at the checkout counter
• Buying groceries for the week

A Zero-Based budget is...

• A budget that starts with a surplus of funds
• A budget that allows for unlimited spending
• A method of budgeting where all expenses must be justified for each new period, and starts from zero.

You could make $100,000 a year and still go into crisis mode over a $500 car repair.

• True

• False

These are the four walls of your budget: food, shelter, clothing, and....

• transportation
• entertainment
• healthcare

Most people who follow the Baby Steps feel like...

• less organized with their money
• more stressed about their finances
• they got a raise

The best method for managing your budget is...

• Relying on guesswork for budgeting
• manage it by month

• Spending money without keeping track of expenses

When you sit down to do a budget, follow this movie quote:

• Show me the money
• one ring to rule them all

• do you feel lucky