HUMS 202 Lecture Notes - Lecture 4: 529 Plan, Individual Development Account, Mutual Fund
Document Summary
Wages, self-employment income, child support, interest or investment income, social security benefits, tops. Net income gross income minus deductions like taxes. Fixed expenses don"t change from month to month and no control over how much u pay ex: rent. Flexible expenses change from month to month, some degree of control. Visit www. irs. gov to learn about federal tax credits to find way to increase income. Keep tax records for at least three years and pay bills online at least one week before due. Budget box system: box w/ dividers for each month, when receive bill check due date and place it behind divider that matches up. Pay necessary household expenses like rent, mortgage, and food. Pay off loan w/ highest interest rate first to save on interest payments. Pay yourself first to save money toward goals you"ve identified, improve standard of living, learn to manage money better, have money for emergencies.
