Creating a Personal Budget

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What does the 50-30-20 spending plan help with?

Back

Setting up a monthly budget.

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What does an annual budget help ensure?

Back

Having more money than expenses.

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Why is tracking your expenses important in budgeting?

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To keep up with your budget.

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What can be done to increase savings in a budget?

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Cutting back on expenses or increasing income.

Front

What can Jessica do with the money left over at the end of the year?

Back

Save it for emergencies, dedicate it to her long-term goal, or apply it to her short-term goal.

Front

What is a personal budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What are fixed expenses?

Back

Regular, unchanging costs such as rent or mortgage payments.

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What are variable expenses?

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Costs that can fluctuate, such as groceries or entertainment.

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What is the purpose of setting financial goals?

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To provide direction and motivation for saving and spending.

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How can one categorize expenses in a budget?

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By dividing them into needs, wants, and savings.