Budget

Question 1

What are the steps to setting up a budget?

Answer 1

Gather every financial statement you can
Record all of your sources of income
Create a list of monthly expenses
Break expenses into two categories: fixed and variable
Total your monthly income and monthly expenses
Make adjustments to expenses
Review your budget monthly

Question 2

What kinds of financial statements should you collect when making a budget?

Answer 2

Every single one!

Question 3

Examples of monthly expenses

Answer 3

Car payments
Rent
Auto insurance
Retirement/college savings
Entertainment
Groceries
Anything you spend money on!

Question 4

What are fixed expenses, and some examples?

Answer 4

Fixed expenses are payments that stay relatively the same each month and are required parts of living.
Rent
Car payments
Auto insurance
Cable
Internet
Phone payment
Etc

Question 5

What are variable expenses, and some examples?

Answer 5

Variable expenses are payments that change month to month.
Gas
Groceries
Entertainment
Gifts