Budgeting Basics

What’s inside

• What is the primary purpose of a personal budget?
• A balanced budget means that planned expenses are equal to or lower than planned income.
• Which expense is usually considered a fixed expense in a monthly budget?
• A budget should include irregular expenses, such as annual insurance premiums, even if they are not paid every month.
• If your monthly take-home income is $3,000 and your planned expenses are $2,450, how much remains for saving or other…
• A zero-based budget requires every dollar of expected income to be assigned to spending, saving, or another financial…
• Which method is most useful for creating a realistic first budget?
• An emergency fund and a monthly budget serve exactly the same purpose.