Cash for Immediate Needs Flashcards
What is Discretionary expenses?
In contrast to fixed expenses, discretionary expenses don’t occur on a regular basis. Com- puter games, CDs, dinner at a restaurant, and a movie are all discretionary expenses. Discretionary expenses are much more under our control than most of our fixed expenses.
What is Fixed expenses?
Fixed expenses are items such as rent, mortgage, food, and utilities, which occur on a regular basis, often once a month
What is Security Spending?
Security spending refers to money outlays intended to protect our assets. For the most part, that amounts to keeping up with insurance premiums. Life insurance, especially term insurance, is aimed primarily at making sure your family has resources should you or your spouse die.
What is Short-Term Savings?
Preferably held in a savings account rather than in a shoebox, this money can be thought of as an emergency cash reserve for unexpected expenditures such as a new clothes washer. It might also be a savings account for expenses like a well-deserved vacation or DVD player.
What is Long-Term Savings?
Retirement funds,
(IRAs), 401(k) plans, U.S. Treasury Series EE bonds, or even tax-free municipal bonds.
What are Paycheck Withholdings?
Withholdings from your paycheck might include federal and state taxes, a payment for health insurance, social security withholdings, and, possibly, withholdings for a company retirement account, stock, or stock options credited to you through a company program.
