Budgeting

What is the simplest change that can be made to the budget to produce more savings next month?

Decrease food expenses

What is most likely the reason variable expenses should be planned after fixed expenses?

Fixed expenses are required and constant, but variable expenses are more flexible.

Why might variable expenses change a great deal at different times of year?

Heating and cooling costs might very considerably

Which is the best way to achieve long-term financial goals?

Save more money from net income

From what part of income should someone take savings?

What otherwise would be discretionary income

A short-term financial goal might include saving for

a piece of furniture

Paying for transportation to and from work is an example of

a variable expense

When creating a budget, you must track both your budgeted expenses and your _________ expenses.

actual

When creating a budget, log fixed expenses

after income

When should fixed and variable monthly budgeted expenses first be planned?

at the start of each month

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your

discretionary money

An expense that is constant each month is called a __________ expense.

fixed

Which is an example of income deduction?

retirement savings

To create a balanced budget, one must make sure to

spend less than or equal to income

When a person invests income, he or she

uses money in a way that will increase its value in the future