Mr. T's Financial Planning Final Review 2025

Variable Expense

• monthly bills that can change

• expenses that DO NOT change from month to month

• monies left over after taxes and expenses are paid

• the amount you actually

Fixed Expense

• monthly bills that can change, depending on USE

• expenses that DO NOT change from month to month

• monies left over after taxes and expenses are paid

• This one

Discretionary Income

• the amount you actually EARN (BEFORE taxes)

• the amount you take home (AFTER deductions - mandatory + voluntary)

• Overtime pay / Time and a Half

• monies left over after taxes and expenses are paid

Gross Income

• monies left over after taxes and expenses are paid

• the amount you actually EARN (BEFORE taxes)

• the amount you take home (AFTER deductions - mandatory + voluntary)

• Overtime pay / Time and a Half

Net Income

• monies left over after taxes and expenses are paid

• the amount you actually EARN (BEFORE taxes)

• the amount you take home (AFTER deductions - mandatory + voluntary)

• Overtime pay / Time and a Half

An hourly employee works 52 hours in a weekly pay period.  This worker is entitled to...

• monies left over after taxes and expenses are paid

• the amount you actually EARN (BEFORE taxes)

• the amount you take home (AFTER deductions - mandatory + voluntary)

  
  

• Overtime pay / Time and a Half

An example of a fixed expense is:

• A.  Entertainment
• B.  Apartment rent
• C.  Restaurants
• D.  Vacations

Which of the following is a FIXED expense?

• Groceries

• Dining out

• Clothing

• Car Insurance

Hourly

• paid for the hours worked

• one yearly amount, regardless of hours worked

• pay based on a percentage of the amount sold

• one yearly amount, regardless of hours worked + pay based on a percentage of the amount sold

Salary

• paid for the hours worked

• one yearly amount, regardless of hours worked

• pay based on a percentage of the amount sold

• one yearly amount, regardless of hours worked + pay based on a percentage of the amount sold