Variable Expenses Calculation Quiz

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What should be done with all surplus money according to the text?

Donate to charity

Ignore it

Add to savings (correct)

Spend on entertainment

Which system does the text recommend for managing expenses?

Digital payment system

Credit card system

No system needed

Cash envelope system (correct)

What must the budget ultimately achieve?

Maximize spending

Ignore budgeting completely

Balance income and expenses (correct)

Increase monthly deficits

What does the text suggest about planning a budget?

Estimates should be based on data Signup and view all the answers

Which of the following is NOT listed as a category for expenses in the text?

Donations Signup and view all the answers

What is the main purpose of a budget according to the text?

To track where money goes Signup and view all the answers

Which of the following is not part of the Seven Keys to Effective Budgeting mentioned in the text?

Investing in stocks and bonds Signup and view all the answers

What does effective money management involve according to the text?

Organizing personal financial records Signup and view all the answers

What is the first step in creating a budget as per the text?

Develop a clear, accurate plan Signup and view all the answers

In budget terms, what does 'expenses' refer to according to the text?

Money spent on any purchase Signup and view all the answers

Which statement about budgeting is true based on the text?

"Effective money management" means planning how to spend the most money. Signup and view all the answers

What is the first step in budgeting according to the text?

Set financial goals Signup and view all the answers

Which type of income should be included when estimating income according to the text?

Income received on a regular basis Signup and view all the answers

What should you do if your income is unpredictable when estimating it according to the text?

Estimate down a little what you will receive next month Signup and view all the answers

What are examples of fixed expenses mentioned in the text?

Student loans, rent, and car payments Signup and view all the answers

For how long should long-term financial goals typically extend according to the text?

1-5 years Signup and view all the answers

Why is it important to adjust financial goals as necessary according to the text?

To ensure they remain practical and achievable Signup and view all the answers

What is the FIRST step in creating and maintaining a budget according to the text?

Create and maintain an Emergency Fund Signup and view all the answers

How much should an Emergency Fund initially be according to the text?

$500 - $1,000 Signup and view all the answers

What should be done if money from the Emergency Fund is used in an emergency according to the text?

Re-supply the fund in the next month as a priority Signup and view all the answers

What does a surplus in a budget indicate according to the text?

Positive cash flow Signup and view all the answers

How is discretionary income defined according to the text?

Leftover money after paying for essentials Signup and view all the answers

When should a budget be reviewed and evaluated according to the text?

Monthly basis Signup and view all the answers