budgeting

Question 1

net pay

Answer 1

income AFTER taxes; more accurate measure of true budget.

Question 2

gross pay

Answer 2

income BEFORE taxes; often used to obtain loan interest rates.

Question 3

fixed expenses

Answer 3

expenses that remain constant within your budget, although they may change occasionally.

Question 4

Variable expenses

Answer 4

expenses that change regularly and are more unpredictable.

Question 5

Recurring Expenses

Answer 5

expenses that happen on a regular basis (usually weekly/ monthly)

Ex.- Rent/Mortgage, Utilities, Food, Cable, Phone Bill

Question 6

Non-Recurring Expenses

Answer 6

expenses that may be planned for (usually annually, biannually, quarterly).

Ex.-Special events, theater tickets, birthday presents, holidays, planned doctor visits, vacation

Question 7

Unexpected Expenses

Answer 7

expenses that cannot be planned for and will not be a regular part of budget (RAINY DAY FUND!)

Ex.-Car repairs, medical emergencies, home repairs, home appliance replacements