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Ramsey Classroom Ch. 2

Terms in this set (16)

budget
written plan for giving, saving and spending
what percent of Americans have a budget?
35%
income
money received for work, gift or investment
fixed expense
costs that do not change from month to month
variable expense
an expense that changes from month to month, but is present every month
intermittent expense
occurs at various times throughout the year and tends to be large
discretionary expense
money for things you don't need
what are the 4 parts of a budget?
income, giving, saving, spending
how much should you give to the less fortunate each month?
10%
zero based budget
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero
net income
how much money you bring home after taxes are taken out
gross income
how much your check is before taxes are taken out
what are the 4 walls?
shelter, utilities, transportation and food
what are the 5 foundations?
save a $500 emergency fund, get out and stay out of debt, pay cash for your car, pay cash for college, build wealth and give
cash-flow statement
a record that shows total income and spending for a given time period
what percent of millionaires have a household budget?
93%
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