Succeeding in the World of Work

Section 1: Budgeting

After You Read Section Review Answers

Review Key Concepts

1. Income is how much money you have coming in and expenses are how much you have going out. Income is estimated by adding together net earnings, tips, gifts of money, interest earned on bank accounts, and any money received from the government. Expenses are divided into fixed expenses, which you have agreed to pay and must pay by a particular date, and flexible expenses, the amounts of which vary from month to month. You have some control over the amount of your flexible expenses.
2. A sample answer might be that good record keeping allows you to see how well you are sticking to a budget and identify areas that need to be adjusted.
3. Check your financial records against your budget, cut back on expenses, and increase income.

4. Job 2 has greater earnings potential until the fourth year, when both jobs pay $38,000 salary. After that, Job 1 has greater earnings potential.