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How to build a budget

Having a budget is the d___ff___r___nc___ between being financially r___spons___bl___ and


floating with financial peril. Debra has made a w___s___ decision to cr___ ___t___ and to organize
her finances and pr___p___r___ for any financial emergencies. The first step is to
d___t___rm___n___ her net income; the n___t income is how much money Debra has l___ft over at
the end of the month. This amount is found by using the following ___qu___t___on: total revenue
minus total expenses equals net income.
Debras revenue is all of the money that she makes in a month, this ___nclud___s income sources
like wages, bonuses and ___nv___stm___nt income; usually these resources are consistent on a
monthly basis. Debras expenses include all of her monthly b___lls, which are broken down into two
categories: F___x___d expenses and variable expenses.
F___x___d expenses are the pa___m___nts for bills that are the same every month such as
mortgage, insurance, car loans, cell phone or cable bills. Debras variable expenses are the bills with
different totals each month, such as ___nt___rta___nm___nt, groceries, gas and ut___l___t___
___s. Debra can now deduct her fixed and variable expenses from her r___v___nu___. If her
revenue is higher than her expenses she has net income. Debra can use her debt income to build an
___m___rg___nc___ savings account or invest in her r___t___r___m___nt. If her expenses are
greater than revenue Debra has a net loss. Debra must reduce her variable expenses to balance her
budget or she will n___ ___d to find a way to reduce her fixed costs such as downsizing her home.
By tracking your total revenue and expenses you could b___ ___ld a budget that quickly determines if
you have money to invest or say, or if youre living beyond your m___ ___ns.
Taken from: http://www.investopedia.com/video/play/steps-to-building-a-budget/

How to build a budget
Having a budget is the d___ff___r___nc___ between being financially r___spons___bl___ and
floating with financial peril. Debra has made a w___s___ decision to cr___ ___t___ and to organize
her finances and pr___p___r___ for any financial emergencies. The first step is to
d___t___rm___n___ her net income; the n___t income is how much money Debra has l___ft over at
the end of the month. This amount is found by using the following ___qu___t___on: total revenue
minus total expenses equals net income.
Debras revenue is all of the money that she makes in a month, this ___nclud___s income sources
like wages, bonuses and ___nv___stm___nt income; usually these resources are consistent on a
monthly basis. Debras expenses include all of her monthly b___lls, which are broken down into two
categories: F___x___d expenses and variable expenses.
F___x___d expenses are the pa___m___nts for bills that are the same every month such as
mortgage, insurance, car loans, cell phone or cable bills. Debras variable expenses are the bills with
different totals each month, such as ___nt___rta___nm___nt, groceries, gas and ut___l___t___
___s. Debra can now deduct her fixed and variable expenses from her r___v___nu___. If her
revenue is higher than her expenses she has net income. Debra can use her debt income to build an
___m___rg___nc___ savings account or invest in her r___t___r___m___nt. If her expenses are
greater than revenue Debra has a net loss. Debra must reduce her variable expenses to balance her
budget or she will n___ ___d to find a way to reduce her fixed costs such as downsizing her home.
By tracking your total revenue and expenses you could b___ ___ld a budget that quickly determines if
you have money to invest or say, or if youre living beyond your m___ ___ns.
Taken from: http://www.investopedia.com/video/play/steps-to-building-a-budget/