Budget- Salaries Q3 Exam

What is the first step in envelope budgeting according to the video?

• Estimating variable expenses

• Putting money into savings

• Labeling the envelopes

• Allocating money towards needs

How should you handle variable expenses in envelope budgeting?

• Allocate the exact amount

• Underestimate the amount

• Overestimate the amount

• Ignore them

What should you do with leftover money in an envelope after paying a bill?

• Leave it in the envelope

• Put it into a want or savings

• Spend it immediately

• Donate it

What is a key advantage of envelope budgeting mentioned in the text?

• It helps in saving money

• It requires no planning

• It allows for unlimited spending

• It makes you rich instantly

What is the recommended percentage of income to put into savings according to the 50-30-20 rule?

• 10%

• 20%

• 30%

• 50%

How does the text suggest handling envelope budgeting with digital money?

• Using a spreadsheet

• Putting debit cards in envelopes

• Ignoring digital money

• Using physical cash only

What should you do if you spend all your allocated fast food money for but still want to eat out?

• Ignore the budget

• Wait until the next month

• Borrow money

• Transfer money from another envelope

What is the purpose of overestimating expenses for variable needs?

• To have enough money to cover the expenses

• To spend more money

• To create confusion

• To impress others

What is a practical step to take if an emergency expense arises?

• Use the money from your savings envelope

• Ignore the expense

• Reduce your food budget drastically

• Ask friends for a loan

How often should you review and adjust your envelope budgeting system?

• Once a year

• Every month

• Every week

• Never, to maintain consistency