2 IncomeMoney 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 BudgetA 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 BudgetIs 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?ORWhat 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.