Once you understand the components of your budget and balance it, you still may have to adjust spending. Life goes through changes, and so does your budget.
Watch the video to learn more about Budgeting to Avoid Overspending and Debt, then test your knowledge at the end of the lesson.
How often should you check in on flexible and discretionary expenses?
A. At least once a day
B. At least once a month
C. Once a year
D. Once you balance your budget, you don’t need to check in again
If spending targets are hard to set, use your least expensive month of the year as the average spending target for that bill.
A. True
B. False
Which of the following is the correct formula for calculating your debt-to-income ratio percentage?
A. Monthly income x monthly debt ÷ 100
B. Monthly income ÷ gross debt x 100
C. Monthly debt x net income x 100
D. Monthly debt ÷ monthly income x 100