Glossary

Personal Budget

Personal budget is not a pretty spreadsheet. It is a pre-decision about where the salary goes.

Practical example

With a net income of $ 5,000, you can allocate $ 2,800 for fixed costs, $ 1,500 for variables, $ 500 for reserve, and $ 200 for margin.

Relation to personal finances

Without a budget, the bill decides for you. With a budget, you decide beforehand and adjust during the month.

Create a realistic personal budget

Related terms

Personal Cash Flow
Record of all money inflows and outflows over a period. Shows if there was a surplus or deficit.
Fixed Cost
Recurring expense that returns every month and commits income before variables.