Budgeting 101 - What Is Budgeting, Using Budget to Create Wealth

Creating and following a budget can help break the cycle of living paycheck to paycheck.

• True
• False

What is the main difference between saving and investing?

• Saving is about accumulating cash securely, while investing is about building wealth with potential risks.

• Saving involves spending less money, while investing means spending more.

• Saving is only for emergencies, while investing is for long-term goals.

• Saving and investing are essentially the same.

High earners are never affected by financial struggles.

• True
• False

Why is it important to diversify investments?

• To reduce the risk of losing everything and increase opportunities for growth

• To focus all efforts on a single type of asset.

• To avoid paying taxes on investments

• To ensure a constant cash flow from one source.

The word 'budget' has its origins in fifteenth century France.

• True
• False

What is a potential consequence of not creating a budget?

• Overspending unintentionally

• Automatically saving money

• Gaining financial freedom

• Avoiding financial emergencies

Investing always guarantees an increase in value.

• True
• False

What does assigning specific jobs to every dollar help acheive?

• Clear financial direction and better control of spending

• Automatic debt reduction

• Increased monthly income

• Guaranteed investment success

Millionaires and billionaires do not use budgets to manage their wealth.

• True
• False