| A | B |
|---|
| financial planning | a process of setting goals, developing a plan to achieve them, and putting them into action. |
| needs | the very basic things we must have to survive. |
| wants | the things that make life more interesting and fun, but you could live without them if you had to. |
| values | the beliefs and practices in your life that are very important to you. |
| goal | something you aim for. |
| delayed gratification | giving up something now, to get something even better in the future. |
| cash flow | the money you receive and the money you spend. |
| opportunity cost | the trade-off of one decision over another. |
| satellite decisions | a major decision which leads to smaller decisions. |
| spending log | where you record everything you spend money on and how much you spend each day. |
| instant gratification | deciding that you want something and buying it right away. |
| income | money you receive. |
| fixed expenses | cost the same every time. |
| variable expenses | common expenses where the amount is different every time. |
| periodic expenses | arise occasionally during the year, usually less than once a month. |
| PYF | pay yourself first. |
| emergency fund | a type of PYF fund. |
| cash flow | the money flowing into you pocket as income and flowing out as expenses and debt. |
