Econ vocabulary (module 1 money management, control your cash flow)

Habits
A regular tendency or practice, especially one that is hard to give up.
Spending log
A place where you record everything you spend money on and track how much money you spend each day.
Instant gratification
Deciding that you want something and buying it right away.
Delayed gratification
Waiting until you know you can afford to buy something.
Impulsive
Acting without thinking.
Needs
Items needed in order to live.
Wants
Items that are desired, but are not needed to live.
Values
Beliefs and practices in your life that are very important to you.
Goals
Something you aim for, something you want to be, do, or have at sometime in the future.
SMART goals
A goal that goes through the stages of the acronym SMART.
Short range goals
Goals you want to achieve within 3 months.
Medium range goals
Goals that are set to achieve in 3 months to the next few years.
Long range goals
Goals you hope to achieve in five, ten, or more years from now.
Internal Revenue Service (IRS)
The division of the US Department of the treasury responcible for the collection of taxes, income, and other tax related things.
Decisions
Making up your mind on something.
Rule of 72
The amount of time it takes, based on the amount of interest you earn, for you to double your money.
Process
A series of actions or steps that lead to a conclusion.
Decide
Strategy to help you make wise decisions.
SMART
Specific
Measurable
Achievable
Realistic
Time bounded
Opportunity cost
The value of the next best thing.
Budget
An estimate of income and expenses for a set period of time.
Income
The money recieved.
Expenses
The cost required for something ( the money spend on something).
Fixed expenses
Expenses that do not change.
Variable expenses
Expenses that change depending on how much of the product you use.
Periodic expenses
Expenses that occur on a regular basis rather than monthly.
Pay yourself first (PYF)
Putting aside money into savings before spending it on anything else.
Emergency fund
An account used to put aside funds needed in an emergency.
Tune ups
The process of making small modifications to improve or optimize the outcome.
Live below your means
Spending less than what you are making.
DECIDE
Define your goal

Establish your criteria

Choose two or three good options

Identify the pros and cons

Decide what is best

Evaluate the results