PF Chapter 2

What's it called when you make money on the percentage of the total sales you make?

• Gross Income

• Irregular income

• Overtime

• Commission

What kind of money counts as income?

• All money that you receive, including money from your job and gifts like birthday money.

• Only the money you make at your job.

• Money in your savings account.

• Only money deposited into your bank account.

Which of the following is not a type of discretionary expense?

• Intermittent

• Fixed

• Depreciation

• Variable

What's your biggest wealth-building tool?

• Inheritance

• Income

• Savings account

• Investments

If you have an irregular income budgeting won't work for you.

• True

• False

When you're creating your monthly budget, what's the first priority under "Expenses"?

• Giving

• Spending

• Entertainment

• Saving

A common misconception is that budgeting will keep you from having fun, when in reality a budget...

• Adds more stress to your life

• Gives you permission to spend

• Restricts your fun completely

• Means there are no rules -- you are free to use your money however you want

If you approach money with a generous spirit, you'll be:

• Less content

• More grateful

• Free of stress

• Able to save

Why is tracking your expenses throughout the month important?

• It allows you to delete categories you don't like.

• It really isn't that important in the long run.

• It helps you pull money from your savings to spend in other categories.

• It gives you insight into whether you're sticking to the budget you set.

What will tracking expenses help you do?

• Stick to a budget

• Catch errors

• Make adjustments

• All of these