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WorksheetsDave Ramsey Chapter 2 Review
Total questions: 40
Worksheet time: 3hrs 20mins
When you are creating your monthly budget, what is the first priority under "Expenses"?
Saving
Giving
Bills (Spending)
Entertainment
What will tracking expenses help you do?
Stick to a budget
Catch errors
Make adjustments
All of these
What is your biggest wealth-building tool?
Income
Investments
Savings Account
Inheritance
What is it called when you make money on the percentage of the total sales you make?
Irregular Income
Gross Income
Commission
Overttime
A(n) _________ should account for fixed, variable, intermittent, and discretionary expenses based on income.
Zero-based Budget
Budget
Cash Flow Statement
All of these
A(n) _________ stays the same from month to month.
Intermittent Expense
Fixed Expense
Variable Expense
Discretionary Expense
A(n) _________ needs to be evaluated in light of your other expenses for the month.
Intermittent Expense
Fixed Expense
Variable Expense
Discretionary Expense
To budget with a(n) ________, prioritize expenses from most to least important so your most important expenses are covered first.
Irregular Income
Net Income
Gross Income
None of these
The cost of groceries and gas is considered a(n) ________.
Fixed Expense
Variable Expense
Intermittent Expense
Discretionary Expense
Taxes and withholdings impact your _______, which is the amount of money you take home on your paycheck.
Earnings
Gross Income
Net Income
Irregular Income
Why is budgeting so important?
It's a good way to make sure all your money is spent by the end of the month.
It helps you figure out the best way to justify purchases that maybe aren't necessary.
It gives you control of your money and sets you up for financial success in the future.
It helps you brush up on your math skills.
If you have an irregular income, budgeting won't work for you.
True
False
What is the envelope system?
It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.
It's a systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts.
It's a way to budget that involves putting a credit card in each envelope to use for that category.
It's a system that involves writing your entire budget on an envelope.
The best way to budget is . . .
By using a digital app
Creating a spreadsheet
The way that works best for you
On paper
Your monthly rent payment is an example of a variable expense.
True
False
The primary reason people do not budget is because they lack the behavior to stick to a budget.
True
False
What is a good way to make sure you are creating a budget that's realistic?
Make sure you create a budget every single day.
Make sure your budget is perfect before starting. If it isn't just right, don't use it.
Check your calendar so you can plan for upcoming monthly expenses.
Make sure you have enough money in your savings account to pull from if you overspend.
Commission is when you make money based on the percentage of _____.
Total Sales
Investments
Budgets
Items Sold
What should you do if you overspend in one category of your budget?
Adjust your budget by removing money from other spending categories.
Just leave it. It will probably work out fine.
Take money from the Giving category. You're giving to yourself!
Ask a friend for the money you overspent.
When is the right time to start creating and living by a budget?
Right now - it's never too early!
When you start researching colleges and the costs that come along with it.
Once you have a job with an income.
When you decide it's time to buy a car.
The first priority in your budget should be ______.
giving
spending
saving
investing
A common misconception is that budgeting will keep you from having fun, when in reality a budget . . .
adds more stress to your life.
means there are no rules - you are free to use your money however you want.
restricts your fun completely.
gives you permission to spend.
What is a way to stay accountable to reaching your financial goals?
Hiring a financial advisor to make your decisions about money for you
Finding a person you trust to help keep you on track with your money goals
Looking at the budget you set at the end of the month
Creating specific categories in your budget
What kind of money counts as income?
Only the money you make at your job
Money in your savings account
All money that you receive, including money from your job and gifts like birthday money
Only money deposited into your bank account
Why is tracking your expenses throughout the month important?
It allows you to delete categories you don't like.
It gives you insight into whether you're sticking to the budget you set.
It helps you pull money from your savings to spend in other categories.
It really isn't that important in the long run.
Net income is the amount you get paid before taxes.
True
False
Going to the movies is an example of what types of expenses?
Intermittent and Variable
Discretionary and Fixed
Intermittent and Fixed
Discretionary and Variable
Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of _______ they have.
Money
Debit Cards
Categories in their budget
Personal Debt
Your money personality can affect your _______.
Attitude toward budgeting
Choice of bank
Personal values
Ability to budget
How many months does it usually take for your budget to start working as a budget should?
One
Three
Four
Five
A budget says what will happen with your money, while a cash-flow statement shows what already happened.
True
False
Detailed categories on your budget will help you make better spending decisions.
True
False
What does a budget show you?
How much you need to save
How much money you spent last month
How much money you plan to come in and go out during the month
How much money you need to earn
If you get married, only one person is responsible for budgeting.
True
False
How often should you create a budget?
Daily
Weekly
Monthly
Biannually
How many categories should you have in your budget?
15 or more
No limit; use as many as you need to keep your budget accurate
No more than 10
At least 3
What are the Four Walls?
Utilities, college fund, restaurants, and car insurance
Cell phone bill, car insurance, shelter, and money for the movies
Food, utilities, transportation, and college fund
Food, utilities, shelter, and transportation
Online budgeting apps are more than effective than budgeting with pen and paper.
True
False
Which of the following is NOT a component of a budget?
Credit Score
Saving
Income
Giving
Although the majority of Americans think budgeting is important, about _____ of Americans actually use a budget.
75%
50%
23%
35%
