23 Questions
What is a budget according to the text?
A plan for managing your money efficiently
What is one of the keys to effective budgeting mentioned in the text?
Developing personal financial goals
What is included in effective money management according to the text?
Developing personal financial goals
What is one benefit of creating a budget as described in the text?
Being able to reach specific goals
Which of the following is included in the 'INCOME' category of a budget as per the text?
Money earned or contributed from personal finances or business
What is important when creating a budget according to the text?
Keeping track of where money goes
What is the FIRST step recommended in creating a budget?
Maintain an Emergency Fund
How much should the Emergency Fund initially be according to the text?
$500 - $1,000
What is the purpose of Discretionary Income in budgeting?
It is used to evaluate a person's income strength
What does a 'Surplus' indicate in budgeting terms?
Positive cash flow
When should you review and evaluate your budget according to the text?
Monthly basis
What is the priority after using money from the Emergency Fund for an emergency?
Re-supplying the Emergency Fund in the next month
What is the main concept emphasized in the text?
The significance of accumulating savings from any surplus.
What should be the relationship between income and expenses in a budget?
Income must equal expenses.
What is a recommended idea for managing money according to the text?
Plan carefully based on data and be practical.
Which of the following is NOT mentioned as an expense category in the text?
Emergency funds
Why is it advised to plan carefully when creating a budget?
To have a clear understanding of all expenses and income sources.
What is the purpose of setting financial goals?
To provide a direction and focus for financial planning
Why is it important to estimate your income accurately?
To plan for both regular and supplemental income streams
What should be included when recording what you spend?
Include all spending and income for the next month
Which type of expenses should be identified when budgeting?
Both fixed and variable expenses, including regular bills
Why should financial goals be adjusted as necessary?
To align with changes in income or expenses
What should you do after setting financial goals?
Keep them in mind daily and journal the progress
Test your knowledge on identifying and calculating variable expenses that fluctuate monthly like groceries, automobile costs, insurance, and more. Learn how to calculate averages based on previous months' expenses and budget for both actual and unexpected expenses.
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