Basics Beginner: Budgeting

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1.
Net income equals gross income minus _______.
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All payroll deductions including taxes withheld. This is the amount you have left to save and spend.
2.
Which type of budgeting tool is most likely to update your financial data fastest?
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An online one. As a general rule, online tools update regularly and more quickly than others.
3.
If you want to get ahead financially, which of the following should be true?
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Your expenses should be lower than your income. When your expenses are lower than your income, you can use the difference for saving and investing, thus enabling you to grow your money and get ahead.
4.
Having mostly fixed expenses instead of variable expenses will keep your expenses low.
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False. Fixed expenses often can be for your most expensive needs or wants. The way to keep fixed expenses lower is to buy what you need rather than what you want.
5.
If your expenses exceed your income in your budget, you may need to revise what you spend your money on, and how much you spend.
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True. You could also earn more money, but it may be easier to change your spending habits.