Let's do a quick recap! We know that cash flow is money in vs. money out. We also know the 50/30/20 rule helps us divide our after-tax income into Needs (50%), Wants (30%), and Savings/Debt (20%).
Engagement Message
The key is correctly categorizing every dollar. Are you ready to give it a try?
Type
Sort Into Boxes
Practice Question
Let's start with the basics. Sort these items into the correct cash flow category.
Labels
- First Box Label: Money In
- Second Box Label: Money Out
First Box Items
- Paycheck
- Bonus from work
- Selling old furniture
- Birthday money
Second Box Items
- Electric bill
- Student loan payment
- Movie ticket
- Car payment
Type
Swipe Left or Right
Practice Question
Now for the tricky part. Is it a need or a want? Swipe left for Need and right for Want.
Labels
- Left Label: Need
- Right Label: Want
Left Label Items
- Your monthly rent or mortgage payment
- Basic groceries for home-cooked meals
- A bus pass to get to work
- Health insurance premium
Right Label Items
- A subscription to a gaming service
- Buying lunch at a cafe instead of packing it
- Upgrading to the latest smartphone model
- A vacation flight to a tropical island
