BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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help you plan how you will spend the money you earn or receive.
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stop you from spending too much money.
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increase the balance of your savings account
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tell you how much you owe the government in taxes
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Detailed explanation-1: -What is a Budget? Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.
Detailed explanation-2: -The main purpose of a budget is to ensure that the unlimited needs are prioritised in order of importance. This allows one to plan expenditure in such a way that priority areas (such as housing, education and healthcare) can be met.
Detailed explanation-3: -Budgeting ensures you’re not spending more than you’re making, allowing you to plan for short-and long-term expenses. It’s an easy, helpful way for people with all types of income and expenses to keep their finances in order.
Detailed explanation-4: -The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt. By regularly keeping your expenses balanced across these main spending areas, you can put your money to work more efficiently.