Personal Budget Flashcard

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What is a personal budget plan?

Back

A detailed financial plan that outlines an individual's income, expenses, and savings goals.

Front

List three key components of a personal budget plan.

Back

Income, expenses, savings goals

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Why is it important to track your expenses when creating a personal budget plan?

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To understand where the money is being spent and identify areas for potential savings.

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How can you determine your monthly income for a personal budget plan?

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Add up all sources of income

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What are some common categories to include in a personal budget plan?

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Income, expenses, savings, debt repayment, discretionary spending

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What are some strategies for reducing expenses in a personal budget plan? Options: Cutting unnecessary expenses, creating a budget and sticking to it, finding ways to save on regular expenses, and finding alternative ways to reduce costs.

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Cutting unnecessary expenses, creating a budget and sticking to it, finding ways to save on regular expenses, and finding alternative ways to reduce costs.

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Why is it important to review and adjust your personal budget plan regularly?

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To ensure that it aligns with your current financial situation and goals.

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Describe the potential benefits of sticking to a personal budget plan.

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Managing expenses, saving money, reducing debt, and achieving financial goals

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What does it mean to have a balanced budget?

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Income is the same or more than expenditures.

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How can you budget money wisely?

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spend less money than you earn