Ramsey CH 2: Budgeting Basics

What do taxes and withholdings impact ? [HINT: It's the amount of money you take home on your paycheck.]

• Net income

• Gross income

• Irregular income

• Commission

What type of expense is the cost of groceries and gas is considered to be?

• Fixed expense

• variable expense

• net income

• discrestionary expense

FILL IN THE BLANK: To budget with a(n) _____________ , prioritize expenses from most to least important so your most important expenses are covered first.

• zero-based budget

• net income

• irregular income

• variable expense

What type of expense needs to be evaluated based on your other expenses for the month?

• discretionary expense

• fixed expense

• variable expense

• Income

What type of expense stays the same every month?

• intermittent expense

• discretionary expense

• fixed expense

• variable expense

What type of budget shoud account for fixed, variable, intermittent, and discretionary expenses based on income?

• Budget

• zero-based budget

• cash-flow statement

• Commission

A budget doesn't tell you not to spend. A budget actually......

• restricts all spending.

• gives you the freedome to spend.

• A budget eliminates unnecessary expenses.
• A budget is only for saving money.

What is the system that is especially helpful for expenses like food, gas, entertainment, and shopping?

• Investment strategy system

• Savings account system

• Credit card rewards system

• Envelope system

The three priorities in your budget, after listing your income, are:

[Choose all three]

• giving

• saving

• spending

• commissionary

Why are specific categories important to consider when creating a budget?

• Budgeting should focus solely on income without categories.
• Categories are unnecessary for personal budgeting.
• Specific categories are only relevant for large businesses.
• Specific categories are important so you can break down your income and spending.