BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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After engaging the expenses
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Before engaging the expenses
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Detailed explanation-1: -“Save 10 percent of your income.” You can decide on your own personal rule to live by that works for your financial situation. Putting away some money on a regular basis-even if it’s a small amount-can help you manage unexpected expenses and emergencies and reach your financial goals.
Detailed explanation-2: -The 10% rule encourages you to save at least 10% of your income before taxes and expenses. Calculating the 10% savings rule is a simple equation: divide your gross earnings by 10. The money you save can help build a retirement account, establish an emergency fund, or go toward a down payment on a mortgage.
Detailed explanation-3: -What is an emergency fund? An emergency fund is a cash reserve that’s specifically set aside for unplanned expenses or financial emergencies. Some common examples include car repairs, home repairs, medical bills, or a loss of income.