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Budget Buzzwords



Budget Buzzwords
Reading Level
     edHelper's suggested reading level:   high interest, readability grades 4 to 6
     Flesch-Kincaid grade level:   4.27

Vocabulary
     challenging words:    variable, additional, entertainment, yearly, quits, cope, insurance, setting, monthly, weekly, budget, payment, listed, paycheck, however, order


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Budget Buzzwords
By Patti Hutchison
  

1     So, you're trying to set up a budget. It's a great idea! Life is full of surprises. A budget will help you be able to pay for things that just "come up." It can help you save for things you want. In simple terms, setting up a budget is simply subtracting the money you pay out from the money you take in. It is a way of making sure all your expenses are covered. A budget shows you where your money goes and helps you to save. There are some steps to follow in order to set up a good budget. There are also some words you should understand.
 
2     Your income is the money you take in. Usually, it is your paycheck. It is helpful to set up a budget for one month. You should add up the amount of income you get over a month's time. If you get paid weekly, add your pay four times. If you get paid every two weeks, add your pay two times. This will give you an approximate monthly income. Write this amount down on your budget sheet.
 
3     Next, find the amount of your fixed expenses. Fixed expenses are amounts that are the same every month. They hardly ever change. These amounts usually include rent, car payments, and loan payments. Write down the name and amount of each fixed expense. Add them all up, and write the total below the column on your budget sheet.

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