Budget Half Test

Which is a great reason why you should start budgeting as soon as you can?

• It will guarantee that you make a million dollars by the time you are 35
• Because it will instill sound financial behaviors starting at young age, create good habits, and increase your chances of living an all around financially healthy adulthood.
• Because it means you will make more money

The Thompson's have a brand new house, drive brand new cars, and have a boat. This means that they are by definition WEALTHY.

• True
• False

Wealth is defined by which equation?

• Assets-Debt=Wealth
• Debt+Assets=Wealth
• Investments-Student Loans=Wealth

John works a wage based job at Petsmart, he makes $25 per hour. He only worked 10 hours last week. John thinks he's going to get a check for $250. Is he correct?

• Yes
• No

The "Pay Yourself First" mentality stems from the idea that we should pay ourselves (savings/retirement) first along with our other necessities before spending on our wants...

• True
• False

Housing, Food, and Medical are all examples of...

• Wants
• Needs

In a zero based budget system, any money leftover without an assignment should go where FIRST?

• Debt
• Retirement
• Vacation Funds

In the 50-30-20 budget system, the 20% represents...

• Necessity spending
• Savings/Debt Repayment
• Wants spending

Living in a "having more month than money" cycle can also be described as...

• Your expenses exceeding your earnings
• Your earnings exceeding your expenses
• The American Dream

The biggest favor and budgeting strategy you can do for yourself is...

• Figure it out in your head
• Put a system in place, use an app, create a spreadsheet, revisit it often, be flexible, and be consisitent!
• Spend our money however and whenever you want