Things an individual set out to achieve.

Too much of an item in stock.

Similar to compromising, exchanging one thing for another; usually for the same value.

Things an individual cannot do without

Monthly expenses that the dollar amount fluctuates per month

What an individual gives up to have something else.

Rules of Budgeting

Expenses are broken down into two categories.

The planned distribution of funds to various and/or specific categories.

Groceries is an example of ?

To FULLY know your budget, you must allocate every penny in your budget.

Living within your means also forces the individual to implement the 3-R’s. Which are the 3-Rs?

Goals that meet all of the following criteria: Specific. Measurable. Attainable. Realistic. Time-oriented.

We all experience opportunity costs throughout a monthly basis

Money set aside for an unplanned costly event.

SMART goals can be broken out into three categories

The amount to which the required amount falls short.

An estimate of expected income and expenses over a given time period in the future.

Long term goals are something that greater than one year.