Budgeting Vocab

Name

A goal you want to achieve in More than 1 year.

• Goals
• Long-term Goals
• Intermediary Goals
• Short term goals

When you have a choice of two things to spend money on, this is the thing you do not choose.

• Emergency Fund
• Trade offs
• Goals
• Opportunity costs

Something you want to achieve. You should know what you want to achieve and when you want to achieve it.

• Trade offs
• Goals
• Budget
• Surplus

This is your plan of how to spend your money also known as a budget.

• Personal Income
• Surplus
• Pay Yourself First
• Spending Plan

A goal that you want to achieve in 3 months to a year.

• Short term goal
• Opportunity cost
• Long term goal
• Intermediary goal

Income you make yourself

• Budget
• Personal Income
• Surplus
• Disposable Income

This is when you save money first before you pay any of your bills. You are saving money for your future self.

• Emergency Fund
• Pay Yourself First
• Budget
• Spending Plan

Expenses that are the same every month (rent, phone bill, insurance, car payment, saving a specific amount of money each month)

• Fixed Expenses
• Hard Expenses
• Variable Expenses
• Need Expenses

The things you want (vacation, entertainment). You should pay for your needs before your wants.

• Fun Expenses
• Fixed Expenses
• Wants
• Needs