BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If I have any money left over
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Only when I receive unexpected money as gifts
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First so I don’t forget to save
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Last after I have taken care of my needs and wants
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Detailed explanation-1: -Try a simple budgeting plan. We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment.
Detailed explanation-2: -Spending includes everything you spend your money on; all of what you may typically think of as “expenses” (utility bills, groceries, transportation costs), but savings for a rainy day, debt payments, life insurance premiums and RRSP contributions are all expenses as well.
Detailed explanation-3: -Needs are those bills that you absolutely must pay and are the things necessary for survival. These expenses can include rent or mortgage payments, car payments, groceries, insurance, health care, minimum debt payment, and utilities.
Detailed explanation-4: -This probably goes without saying, if you have a true emergency then you should use your savings. That is the purpose of the emergency fund. So if your car suddenly threatens to quit on you and you need it for your job, that’s an emergency. If you have a sudden medical bill, that is an emergency.