Budgeting
Listing and itemising a household's income and expenses to gain clarity, contain spending within income, identify wasteful expenditure and direct scarce funds to priority goals.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
- Financial planningThe process of estimating what a person will need money for across their lifetime and building an investment plan to meet each of those needs — savings with a purpose attached.
- Real rate of returnThe return on an investment after the effect of inflation has been removed — what the money actually buys more of, as against the nominal percentage the product advertises.
- Time value of moneyThe principle that the same sum of money is worth different amounts at different points on a timeline, because money held today can be invested and because inflation erodes what it will buy.
Where this is taught
- Series SEBI-ICE · Chapter 1: Introductionintroduced here
- Series XVII · Chapter 1: Fundamental Concepts in Retirement Planningintroduced here
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