Personal Finance
Terms
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- budget controls
- Methods and techniques intended to keep income and expenditures within the planned budget totals.
- cash-basis budgeting
- Financial recordkeeping that recognizes earnings and expenditures when money is actually received or paid out.
- organization phase of budgeting
- the phase of budgeting, which involves establishing the structural one's mechanical aspects appropriate for one's personalized budget.
- ledger
- a sheet ofpaper, form, booklet, or computer file for maintaining income and expenditure records.
- disposable income
- the income received after taxes and all other employer withholdings, the money available for spending, saving, and investing.
- budget estimates
- Recorded amounts in a budget that are planned and expected to be received or spent during a certain period of time.
- decision-making phase of budgeting
- the phase of budgeting which focuses on the financial aspects of budgeting and the decisions about the sources of funds as well as their destination.
- subordinate budget
- a detailed listing of planned expenses within a single budgeting classification.
- recordkeeping
- the process of recording the sources and amounts of dollars earned and spent
- variable expenses
- Variable expenses change depending on your consumption of a good or service. A variable expense is a cost that changes significantly from period to period, such as week to week, month to month, quarter to quarter or year to year.
- fixed expenses
- A fixed expense is a cost that does not change from period to period or that changes only very slightly. Fixed expenses are usually paid on a regular basis, such as week to week, month to month, quarter to quarter or year to year.
- reconciling budget estimates
- reconciling conflicting needs and wants as one revises one's budget until total projected expenses do not exceed projected income.
- net surplus
- the amount remaining after all budget classification deficits are subtracted from those with surpluses.
- accrual-basis budgeting
- Recognizes earnings and expenditures when the money is earned and expenditures are incurred, regardless of when money is actually received or paid.
- expenditure
- an amount of money that has been spent
- discretionary income
- the money people have left over when they have paid for the necessities of living.
- Budget exceptions
- Occur when budget estimates in various classifications differ from actual expenditures, with discrepancies usually taking the form of over expenditures.
- budgeting
- a process of projecting, organizing, monitoring, and controlling future income and expenditures.
- revolving savings fund
- a variable expense classification in budgeting into which funds are allocated in an effort to create savings that can be used to balance the budget later so as to avoid running out of money.
- monitoring unexpended balances
- a method for controlling overspending by keeping track of the total of each budget classifications.
- income
- the monetary payment received for goods or services, or from other sources, as rents or investments; interest, salary, wages, annuity, gain, return, earnings
- cash-flow calendar
- A budgeting device on which annual estimated income and expenses are recorded for each budgeting time period in an effort to identify surplus or deficit situations.
- long-term goals
- targets or ends that an individual or family desires to achieve using financial resources one or more years in the future.
- goal-setting phase o budgeting
- the phase of budgeting, where dollar-amount targets (both in the long and short term) and target dates for achievement are set.
- budget
- a document or set of documents used to record both projected and actual income and expenditures over a period of time
- short-term goals
- financial targets or ends that can be achieved in a year or less
- variance analysis
- involves comparing the budgeted and the actual amounts in the various budget classifications at the end of each month.
- values
- principles, standards, or qualities considered important, worthwhile, or desirable that provide criteria for goals, thereby giving continuity to decisions; Fundamental beliefs about what is considered important, worthwhile, or desirable that provide criteria for goals.
- control phase of budgeting
- the phase of budgeting, where an individual or family uses various methods and techniques to keep income and expenditures within the planned budget totals.
- evaluation phase of budgeting
- the final phase of budgeting, which provides feedback for reexamine short-term goals and, if needed, for reclarifying long-term goals.
- envelope system
- a method of budget control that gets its name from the fact that exact amounts of money are placed into envelopes for purposes of strict budgetary control.