Planning a budget is one of the best ways to ensure that you make ends meet at all times. A major part of your budget plan will be focused on fixed expenses. But what exactly are fixed expenses and how can you best manage them? Take this quiz to see if you've learned enough to make your budget planning really pay off.
How should you prepare a budget plan if your income varies from month to month?
Base your budget on the lowest amount you expect to make in any month.
Use an average of the past six months' income as a base.
Consult with a professional before preparing your budget.
What is an example of a non-fixed expense?
car loan payments
Which of these household expenses is a fixed expense for most people?
What percent of your income do many budgeting advisers suggest you put into savings?
What mistake do many people make when using automatic bill payment systems?
forgetting to enter such payments in their checkbook registers
not checking that there were no mistakes
not ensuring that there is enough money in their accounts to cover the bills
What can help you not overlook any fixed expenses when planning your budget?
looking over your prior checkbook entries
adding an extra 10% for "miscellaneous fixed expenses"
charting your overall income and expenses for the prior 10 years
What is an easy way to reduce your fixed expenses?
eliminating unnecessary expenses
transferring your credit card debt to a card with a lower interest rate
creating a budget plan that lists them clearly
What will help ensure that you put money into savings each month?
making it your first post-paycheck expenditure each month
setting an automatic reminder on your computer
reducing your fixed expenses
What type of fixed expense typically has a prepayment penalty?
What is a good way to increase your long-term income?