Chapter 3- Budgeting

Fixed vs. variable expenses

Fixed expense/cost Remain the same no matter how much

you use of a service or consumer item Can change only very slightly and are

usually paid on a regular basis Examples?

Variable expense/cost change depending on your use of

products or services

Sample Budgets So many different

options: College Student Single Person-First

job Another option

Married- homeowners

Software to help, templates,

Largest components of budgets Housing

Mortgage/Rent What % of income

should you spend? Loans

Student Credit Cards Car

Insurance Home, Car, Life,

Health

Type of Mortgages

Length ARM vs. Fixed Rate Points Fannie Mae, Freddie Mac Sub-prime Lending Historical Rates vs. Current