Budgeting Principles and Goals

Pay yourself first!

Live within your means (avoids bad credit score)

Peer pressure, advertising, change in life situation (job, birth of child, married, school), acts of God, regular repairs/maintenance to your home/vehicle, holidays/birthdays

<p>Reality, restraint, and responsibility</p> Signup and view all the answers

<p>Fixed expenses and variable expenses</p> Signup and view all the answers

<p>Ensure that the finish line is well known and executed to the way you want to live life</p> Signup and view all the answers

<p>Specific, Measurable, Attainable, Realistic, Time Oriented</p> Signup and view all the answers

<p>A budget works when the expenses and incomes are balanced, and every penny is accounted for</p> Signup and view all the answers

<p>Mortgage/rent, car payment, gym membership, car insurance, Netflix</p> Signup and view all the answers

<p>Cell phone, gas, groceries, power, utilities, entertainment, dining out</p> Signup and view all the answers

<p>Costs that do not change per month; the individual pays the exact same amount each month</p> Signup and view all the answers

<p>Things an individual cannot do without</p> Signup and view all the answers

<p>Too much of an item in stock</p> Signup and view all the answers

<p>Monthly expenses that the dollar amount fluctuates per month</p> Signup and view all the answers

<p>To spread an expense over more than one accounting period</p> Signup and view all the answers

<p>An estimate of expected income and expenses over a given time period</p> Signup and view all the answers

<p>The amount to which the required amount falls short</p> Signup and view all the answers

<p>The spending money left over at the end of each pay period/month after all mandatory responsibilities have been deducted</p> Signup and view all the answers

<p>Things an individual does not have to have in order to survive but could give a higher quality of life</p> Signup and view all the answers

<p>Money set aside for an unplanned costly event</p> Signup and view all the answers

<p>Things an individual sets out to achieve</p> Signup and view all the answers

<p>Earnings the amount of money an individual earns throughout a given period</p> Signup and view all the answers

<p>Similar to compromising, exchanging one thing for another, usually about the same value</p> Signup and view all the answers

<p>What an individual gives up to have something else</p> Signup and view all the answers

<p>Put money in savings or investment accounts first, then pay bills and discretionary income.</p> Signup and view all the answers