Zero base budget

John is planning to use the zero based budget for his finances. What is the first step he should take in creating his budget?

• John should write down his monthly income

• John should write down and total his expenses for the month

• John should figure what his seasonal or irregular expenses might be for the month

• John should subtract all expenses from income for the month

What is the envelope budget method?

• Use Envelopes only for the extra cash you have

• You put your cash into different envelopes based on the budget categories.

• A hypothetical list of your expenses

According to the zero based budget, what is the second step in creating your budget?

• Write down your monthly income

• Write down and total your expenses for the month

• Figure what your seasonal or irregular expenses might be for the month

• Subtract all expenses from income for the month

How should you determine the amount of cash to put in each envelope?

• Based on what others are doing
  

• Based on your personal values and previous spending
  

• By guessing an amount
  

• By putting an equal amount in each envelope

According to the zero based budget, what is the third step in creating your budget?

• Write down your monthly income

• After required expenses such as rent, write down other expenses that you Want to spend on, not required

• List your required expenses such as rent, utilities, and transportation

• Subtract all expenses from income for the month

Regardless of which type of budget you use (50/30/20), Envelope, or Zero Based) what is the first step in all three methods?

• Fill your envelopes with cash
  

• Set limits for each category
  

• Determine your net income
  

• Track your spending

People that budget and are good with their money say;

• Your money works for you

• You work for your money

A Budget controls spending. Which of the following is NOT a good ways to save money and budget

• Don’t go out to dinner 🥘/ eat out less

• Buy used cars 🚘

• Use coupons or wait to buy something until it’s on sale

• Use all of your savings and take out loans with high interest rates whenever you can’t afford expenses

The goal of a budget is _________________.

• to spend more than you make

• to spend less than you make