Budgeting Flashcards
1
Q
Define debts
A
Debts are money that you owe and need to repay, including money you’ve borrowed as credit
2
Q
Define expenses (necessary & unnecessary)
A
The money you pay for things. This includes regular monthly expenses and occasional/seasonal expenses
Necessary - Essenstial expenses that you must pay ie Rent, credit card debt
Unnecessary - Non essential expenses that you can eliminate if you want to save more. Ie Takeaways, Netflix
3
Q
Define short term savings
A
Savings under 5 years
4
Q
Define medium to longer term savings
A
More than 5 years
5
Q
Retirement savings
A
Long term savings or investments
6
Q
Define emergency/contingency fund
A
The money you have to support yourself in case an emergency happens (1-3 month of your basic monthly living)
