Mrs. B's Money Management: Control Your Cash Flow

Instant gratification

Deciding that you want something and buying it immediately without thought about whether you can afford it or not

Fixed Expenses

Expenses you are obligated to pay and cost the same each month

Capital

Goods used to produce other goods and services

Personal Finance

Learning how to manage your money wisely

Cash Flow

Money coming in as income and going out as expenses and debt

income

Money you receive from work or use of property

PYF (Pay Yourself First)

Putting money into saving before you begin paying your fixed or flexible expenses

There's No Such Thing as a Free Lunch

Resources used for one purpose could have been used for another

Emergency Fund

Savings account you have in case of emergency because every expense is not predicted

Goals

Something you aim for in the future

Smart goals

Specific, Measurable, Attainable, Relevant, Time-Bound

Production

The creation of goods and services

Human Resources

The intellectual, physical, and talents of people who work

Opportunity Costs

The next best option given up when you make a decision

Financial Planning

The process of setting goals, developing a plan to achieve them, and putting the plan into action

Economics

The study of how economic systems work

Expenses

What you spend your money on

Scarcity

When resources are limited and our wants are unlimited

values

ideas and beliefs that are most important to meaningful to you

Spending Plan

map that details how you are going to use your money for things you want

Needs

things that are essential to your health and security

wants

things that make life more interesting and fun, but you can get by without them

Delayed gratification

waiting to buy something until you know you can afford it

Spending Log

where you record everything you spend money on and how much you spend each day

Periodic Expenses

Arise occasionally during the year, usually less than once a month

Incentives

Benefit or cost that influences a person's decisions

Flexible or Variable Expenses

Common expenses where amount is different each month and you can choose to spend or not spend

Budget

A plan to divide your income among spending and saving options