Living Independently Flashcards
What are expenses?
The cost of goods and services for daily living
What are fixed expenses?
Expenses that are paid monthly and cost the same amount and are usually essentials (rent, car payments, wifi)
These may vary based on where you live, type of wifi provider, type of vehicle,etc.
What are variable expenses?
Expenses that change in cost month to month. (Power, water, fuel, groceries, outings, shopping)
What is income?
Income is the money you earn on a regular basis (bi-weekly, monthly,etc).
What is gross income?
An individuals total earnings before taxes or other deductions.
What is net income?
Total amount of income remaining after deductions are taken away from your gross income.
What are deductions?
The amount that is deduced (taken away) from your gross income. Most deductions are tax deductions.
What is a budget?
An estimate of your income and expenses for a set period of time (weekly, monthly, yearly, etc)
What is disposable income?
Any income remaining after all essential expenses have been paid for.
