The Ultimate Creating a Budget Quiz
by Staff
A budget can be an effective tool to better control household expenses. Budget the time to take this quiz and learn some good advice.

Why on earth should an average householder need a budget?

  • if you earn enough you don't
  • to keep a balance between income and expenditure
  • to prevent wasting money

What is disposable income?

  • money to buy disposables
  • what the IRS takes
  • after tax income

How do you begin to construct a budget?

  • Get together records of all expenses and income.
  • Gather a random sample of fixed expenses.
  • Calculate projected spending for next six months.

How do you calculate average monthly expenses?

  • Choose a month at random.
  • Total up a year's expenses and divide by 12.
  • Take the expenses for the past month.

How do you determine your financial situation for the past year?

  • Compare average monthly expense with the highest single monthly expenditure.
  • Check your bank statement.
  • Subtract your total expenses from total income.

What does being in the black mean?

  • you're doing okay financially
  • you're not doing too well
  • your fixed expenses are within accepted financial parameters

What expenses can reasonably be reduced?

  • the highest
  • variables such as food and clothing
  • only those over the average monthly amount

How can you reduce gas expenses?

  • drive slower
  • switch off engine at traffic lights
  • carpooling

How can you save on clothing bills?

  • Buy only what you need.
  • Pay with cash not credit card
  • Hand wash clothes so they will last longer.

If, after cutting back a much as possible, what should your next step be?

  • take a loan
  • pay by post-dated checks
  • find extra income