Budgeting Essentials and Strategies

The video tutorial by Justine from Debt Free Millennials introduces the basics of budgeting, sharing her personal success story of paying off student loans on a modest salary. It guides beginners through creating a budget by listing income, debts, fixed, and fun expenses. The tutorial emphasizes the importance of future savings and having a buffer for unexpected expenses. It concludes with ensuring a zero-based budget where income equals expenses, and introduces a free budget toolkit for tracking finances.

What is the primary tool mentioned for paying off debt?

• Saving

• Budgeting

• Investing

• Borrowing

What should you list first when creating a budget?

• Debts

• Monthly income

• Monthly expenses

• Savings

How should you estimate your monthly income if you are an hourly worker?

• Use the lowest paycheck

• Use the highest paycheck

• Guess the amount

• Take an average of the last three months

Which of the following is considered a fixed expense?

• Groceries

• Dining out

• Clothing

• Netflix subscription

Where should you categorize restaurant expenses in your budget?

• Fixed expenses

• Debt payments

• Fun expenses

• Future savings

What should you do if your total expenses exceed your income?

• Ignore it

• Adjust your budget

• Increase your income

• Borrow money

What is the purpose of the 'fudge' category in a budget?

• To save for future expenses

• To cover unexpected expenses

• To invest in stocks

• To pay off debt

What should you include in the 'future' category of your budget?

• Daily expenses

• Debt payments

• Savings for goals

• Entertainment costs

What is a zero-based budget?

• A budget with only fixed expenses

• A budget with no income

• A budget where income minus expenses equals zero

• A budget with no expenses

Why is it important to allocate every dollar in your budget?

• To increase your income

• To make purposeful budgeting decisions

• To avoid forgetting about it

• To ensure it gets spent