Quick Budgeting Glossary
Budget: Tool commonly used to measure expenses against income. A written plan that helps people manage their money.
Down Payment: Initial payment, usually a large amount, used to reduce the amount financed.
Types of Expenses: Fixed: Expenses due at a particular time or on a regular schedule. These expense amounts remain the same or change according to a known schedule (for example, rent or car payment).
Flexible: Expenses that occur by choice and are subject to change (for example, hobbies and entertainment).
Variable: Expenses that take place on a regular basis and are consistent and predictable, but the amounts change (for example, utilities and credit cards).
Types of Income: Gross Income: Total amount of money earned before any taxes and payroll deductions are subtracted.
Net Income: Gross income minus taxes and payroll deductions; your take-home pay.
Bi-Weekly Income: Payment every two weeks (for example, every other Friday).
Semi-Monthly Income: Payment twice a month, such as on the 15th and the 30th.
| Learn About: | |
|---|---|
| Living Within Your Means | Shopping Within Your Budget |
| Budget Glossary | Research The Right Vehicle |
| Why Budgeting Works | How to Develop a Budget |