Terms in this set (10)
a variable expense. When should fixed and variable monthly budgeted expenses first be planned? spend less than or equal to income . Why might variable expenses change a great deal at different times of year?
When should fixed and variable monthly budget and expenses first be planned?
Terms in this set (10)
a variable expense. When should fixed and variable monthly budgeted expenses first be planned? spend less than or equal to income . Why might variable expenses change a great deal at different times of year?
What is most likely the reason variable expenses should be planned after fixed expenses Fixed expenses are deducted from gross income and variable E?
What is most likely the reason variable expenses should be planned after fixed expenses? Fixed expenses are required and constant, but variable expenses are more flexible .
Why might variable expenses change a great deal at different times a year?
The variable expense that can change a great deal at different times of a year is heating and cooling cost . Cooling and heating services are a variable cost because they are subject to climatic conditions. They are unpredictable and people don’t use these services the same way throughout the year.
For what part of income should someone take savings?
At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.
Which is the best way to achieve long term financial goals?
Which is the best way to achieve long-term financial goals? Save more money from net income .
What is the simplest change that can be made to the budget?
What is the simplest change that can be made to the budget to produce more savings next month? Decrease food expenses .
Why is net income lower than gross income fixed spending?
Both gross profit and net income are found on the income statement. Gross profit is located in the upper portion beneath revenue and cost of goods sold. Net income is found at the bottom of the income statement since it’s the result of all expenses and costs being subtracted from revenue .
When planning a budget What is the biggest consideration?
- When revising a budget, it is important to make choices that allow you to continue .... ...
- What is the first step in the decision-making process? ...
- When planning a budget, the biggest consideration should be the. ...
- Simon bought a computer and made monthly payments.
What is an example of an income deduction?
For example, if you earn $50,000 in a year and make a $1,000 donation to charity during that year , you are eligible to claim a deduction for that donation, reducing your taxable income to $49,000. The Internal Revenue Service (IRS) often refers to a deduction as an allowable deduction.
What are the main purposes of a budget select three options?
Terms in this set (3) A budget allows you to meet your personal goals with a system of saving and wise spending. Main purposes are Budget are Live within your income, Make wise buying decisions, Avoid credit problems, Plan for financial emergencies, Develop money management skills, Achieve your financial goals .
What is short term financial goal might include saving for?
A short-term financial goal might include saving for a down payment on a house .
Which items in the budget are fixed expenses select all that are correct?
- Mortgage(s)
- Rent.
- Property taxes (if paying monthly)
- Strata fee / condo fee.
- House / tenant insurance.
- Utility bills (cable, cell, electricity, water, etc.)
- Lease / car loan payment.
- Vehicle insurance (if paying monthly)
What is the 70 20 10 Rule money?
Using the 70-20-10 rule, every month a person would spend only 70% of the money they earn, save 20%, and then they would donate 10% . The 50-30-20 rule works the same. Money can only be saved, spent, or shared.
What’s the 50 30 20 budget rule?
The 50/30/20 rule of thumb is a set of easy guidelines for how to plan your budget. Using them, you allocate your monthly after-tax income to the three categories: 50% to “needs,” 30% to “wants,” and 20% to your financial goals .
How much money should I put aside for bills?
What is the 50/30/20 budgeting rule? In a nutshell, it’s a spending plan where 50% of your take-home pay goes toward Needs, 30% goes toward Savings & Debt , and the remaining 20% on whatever you please (aka Wants).
