1. My Personal Budget Vocabulary

2. Income
Money received, especially on a regular basis, for work or through investments.
Easy Definition: Money that you have MADE.

3. Expenses Money spent over a given period time.
Easy Definition: Money that is being SPENT.

4. Budget
A tool that compares income and expenses over a set period of time.

5. Income < Expenses Deficit
The amount by which, especially a sum of money is too small.
Hint: You have a deficit when you are spending more money than you make. It simply means you don’t have enough of what you need so you have a deficit.
Income < Expenses

6. Debt The state of owing money.
Hint: You have spent more than you have made so you owe someone money.
If you run a deficit month after month then you go into debt. Meaning you owe somebody money.

7. Income > Expenses Surplus An amount of something left over.
Hint: You have made more money than you are spending so you have some left over.
Income > Expenses

8. Balanced Budget
Is a budget where Income = Expenses.
Income = Expenses

9. What-if Analysis Is easy to do in Excel.
Involves asking a simple question starting with ‘What if…’.
Example…
What if I made $100,000 this year, how would that impact my budget? OR
What if I lose my job this year, how will that impact my budget?

10. What-if Analysis Is very powerful!
Allows you to quickly test different scenarios and see INSTANT results.
Allow you to make better decisions.