| A | B |
|---|
| Wants | Have a desire to possess or do (something); wish for. |
| Fixed Expenses | These do not depend on your consumption of a good or service. 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. |
| Variable Expenses | These 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. |
| Discretionary Income | Income remaining after taxes, mandatory charges, and expenses on necessary items. |
| Needs | Something that is necessary for an organism to live a healthy life. |
| Income | Money received, especially on a regular basis, for work or through investments. |
| Financial Plan | A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. |
| Budget | Contains a list of all planned expenses and revenues. It is a plan for saving and spending. |
| Lease | A written agreement giving a renter the right to use property (apartment, car, house, etc) for a set term. |
| Step 1 | Track current income and expense |
| Step 2 | Personalize Your Spending Plan |
| Step 3 | Allocate Money to Each Category |
| Step 4 | Implement and Control |
| Step 5 | Evaluate and Make Adjustments |
| Control system | Control technique whereby actual results are compared with budgets |
| Spendnig plan | A statement, sometimes referred to as a budget, which records both planned and actual income and expenses over a period of time |
| PYF | A popular and very effective saving strategy stating you should save 10%-20% of your income; can help individual choose saving over spending money |
