Wouldn't It Be Nice...: Personal Budget

What is the difference between fixed and flexible expenses?

Fixed Expenses are basically like your bills that for the most part, stay the same each month. It could be things like your mortgage, loan payments, your groceries and your utilities.
Flexible Expenses are the expenses that can vary month to month. Higher this month then it was last month. So it would be things like your entertainment, little splurges, savings or investment, and even your shopping sprees.

What is the difference between compound and simple interest on a savings account?

Simple Interest is interest charged on your first balance. So its when make your first deposit you get a certain interest charged on it, then every time you get interest it the same amount of interest as it was the first time and the second time, ect. So if you got $10 of interest for your first deposit, then every interest amount gained from then on will be $10.
Compound Interest is when the interest gained changes when your amount changes. So lets say you have $100 dollars for your first deposit and get 5% interest, so you get $5. Then next month comes around, and you have $200 in your account. You get 5% interest of the $200 dollars instead of 5% of your initial balance of $100 dollars.

The Importance of Savings:

It's always nice to have money saved up kind of for the security of it. Knowing that if at any point in time, you need something like if your car breaks down or just any old thing, and you know you have at least something saved up, you don't have to freak out too much. Then lets say you feel like doing a little shopping to give your home a little spring make over. If you have some money saved up, whether it's in the bank or in your special place, you don't have run to a credit card to get your extra cash.

What advice would you give someone regarding savings?

One thing i would definitely recommend is nothing is too little to save up. whether it's $1 or $100 save what you can, when you can. Everything will add up eventually. Also, make sure that what you do save, you don't waste on something that's not worth it. Give yourself a legit reason to save, and leave your money untouched until necessary.

Is it okay to spend money now?

Of course it is! You should definitely enjoy the money that YOU earn. I mean saving money is VERY important, but at the same time you need to at least splurge some one your hard earned cash on somethings for yourself!