Question

creating a monthly budget (part 2)

• includes the following steps

○ creating a list of
▪ include all expenses which will be incurred over the month
○ breaking expenses into and flexible (variable)
▪ fixed expenses are those which stay relatively the same from month to month and are required
▪ examples: mortgage and rent, payment, car payment and utilities
▪ (variable) expenses are those which can change from month to month
▪ examples: eating out, and clothing
entertainment flexible fixed credit card monthly expenses

Explanation:

The steps in creating a monthly budget involve listing all monthly - incurred expenses. Expenses are categorized into fixed (stable monthly, required, like mortgage, rent, credit card payment, car payment, utilities) and flexible (variable, like eating out, entertainment, clothing).

Answer:

• creating a list of monthly expenses
• breaking expenses into fixed and flexible (variable)
• examples: mortgage and rent, credit card payment, car payment and utilities (fixed)
• flexible (variable) expenses are those which can change from month to month
• examples: eating out, entertainment and clothing