What is the money set aside for future needs known as?
What is the money set aside for future needs known as?
Saving – The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals, and funds for investing.
What’s leftover money called?
Key Takeaways. Discretionary income is money left over after a person pays their taxes and essential goods and services like housing and food. Nonessential items like vacations and luxury goods are usually paid for with funds from discretionary income.
What is a well stated financial goal?
“Pay off $5,000 in credit card debt in two years” is a meaningful financial goal because it states the action in specific terms (pay off $5,000 in credit card debt) and sets a target date or deadline (in two years).
What are electricity and food expenditures?
Electricity and food expenditures are: Variable expenses that change from one period to another. An example of a fixed expense is: Mortgage, rent, and car payments.
What are future spending plans called?
A spending plan (also called a budget) is simply a plan you create to help you meet expenses and spend money the way you want to spend it. determine how much you need to save regularly for irregular and/or unexpected expenses like car repairs and insurance payments.
What word means legally collectible?
Negotiable. a word that means legally collectible.
What is another word for disposable income?
What is another word for disposable income?
| discretionary income | disposable personal income |
|---|---|
| discretionary expenses | discretionary spending |
What is financial goal setting?
Setting Financial Goals. Financial goals are the long-term, short-term and intermediate goals that form the basis of a holistic financial plan. Not to be confused with a budget or financial plan, financial goals are specific and measurable milestones that, when reached, bring you closer to your ideal future.
What is short term financial goals?
Short-term financial goals are the things you want to do with your money within the next few months or years. Some key short-term goals include setting a budget, starting an emergency fund, and paying off debt.
What is the financial planning process?
Financial planning is a process, not a product. Data is then gathered to analyze and evaluate your financial status. Once complete, your plan can be developed and implemented. Monitoring the plan on an ongoing basis is essential in order to make necessary adjustments to reach your goals.
What is usually considered a variable expense?
Variable expenses are defined as such because the amount you spend may vary each month. Although variable costs are quite often discretionary expenses, some may be necessities. Buying gas for your car each month is a variable expense, as are car repairs and maintenance. Grocery shopping is also a variable expense.
