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Personal Finance Courses: Budgeting

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1.
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.
2.
When it comes to using a budget, what does it mean to 'pay yourself first'?
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Set aside money from your income into a savings plan. Paying yourself first ensures that you are prepared to deal with future financial issues.
3.
A budget is a written comparison of your cash inflows and _______.
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Cash outflows. Money coming in is compared to money going out to cover your expenses, loan payments, and savings. It shows how you are spending and saving income.
4.
Budgeting software can provide financial forecasts for your financial data.
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True. Not all software offers this, however. The ones that do are more advanced and pricey.
5.
Which of the following is most likely to be a variable expense?
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Your groceries. In nearly all cases, groceries are likely to vary in price and how often you buy them.