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Savings & Net Worth

TermDefinition
variable expense an expense that changes monthly based on usage
discrectionary income income-expenses=?
deficit when more money is being spent than earned or received; negative discretionary income or net worth
net pay the amount of money left over after taxes are deducted from your gross pay
insolvency a financial state that happens if liabilities are greater than assets
surplus extra money that case be used to spend or save; positive discretionary income or net worth
fixed expense an expense that stays the same every month
long-term liabilities debt that does not have to be paid in full within one year
net worth assets-liabilities=?
budget a plan for using your money to meet your wants and needs
gross pay the amount of money you earn before taxes are deducted
current liabilities debts to be paid in full within one year or less
Created by: Ms Gaskill