Budgeting Basics and Financial Management

What is the primary tool used in the video for creating a budget?

• Online software

• Notebook

• Budget app

• Excel worksheet

What type of income should be listed when calculating monthly income?

• Bonus income

• Projected income

• Take-home pay

• Gross income

Why is it important to budget using the minimum amount of income?

• To simplify the budgeting process

• To account for potential income fluctuations

• To avoid overspending

• To ensure you have extra money for savings

Which type of expenses should be listed first when creating a budget?

• Irregular expenses

• Variable expenses

• Fixed expenses

• Discretionary expenses

What is an example of a variable expense?

• Rent

• Electricity

• Eating out

• Insurance

What should you do if your expenses exceed your income?

• Increase your income

• Cut down on fun money

• Take a loan

• Ignore the budget

What is the purpose of a miscellaneous category in a budget?

• To save for future investments

• To cover unexpected expenses

• To allocate for entertainment

• To track monthly savings

What should be done with the remaining funds after subtracting expenses from income?

• Ignore it

• Spend it on luxury items

• Allocate it to specific categories

• Leave it in the bank

Why is it important to give every dollar a job in your budget?

• To ensure all money is spent

• To avoid unnecessary spending

• To increase bank balance

• To simplify accounting

What is one final tip mentioned for organizing finances?

• Write in all regular and irregular expenses

• Use multiple bank accounts

• Hire a financial advisor

• Invest in stocks