Intro to Budgeting
Understanding Your Outflows
OK, I think I now have a firm grasp on my inflows. Now what?
Now budgeting becomes a matter of comparing your inflows to your outflows and then making some decisions. Once you’ve subtracted your monthly expenses from your monthly take-home pay, how much, if anything, do you have left? Is that number sufficient for you to hit your savings goals?
Which of the following might NOT get deducted from your paycheck if you are an independent contractor?
Retirement contributions
Federal and state taxes
Health insurance payments
All of the above
Which of the following are good examples of goals to add to your budget?
Saving for your retirement
Vacations and other big purchases
An education for yourself or a child
All of the above
Which of the following outflows do you NOT have to budget for?
Payments that are automatically billed to my credit card
Debt repayment since this is not a new expense
Unexpected expenses that may not happen this year
You need to budget for all of the above