ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Having a budget can help you create an emergency fund.
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Using a budget can qualify you for special discounts at your favorite stores
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Using a budget can allow you to work towards your financial goals.
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A budget can help you identify any bad spending habits.
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Detailed explanation-1: -You overhear your cousin talking about the importance of creating and sticking to a budget. Which of the following reasons he gives below is actually FALSE? A budget can help you identify any bad spending habits.
Detailed explanation-2: -Having a budget keeps your spending in check and makes sure that your savings are on track for the future. Budgeting can help you set long-term financial goals, keep you from overspending, help shut down risky spending habits, and more.
Detailed explanation-3: -Budgeting requires that people set limits on their spending, so when you have income or spending that varies on a monthly basis, it can be especially hard to stick to a budget.
Detailed explanation-4: -Have set goals and objectives you wish to achieve. Ensuring you don’t spend money you don’t have. Ensure you are happy in retirement. It helps to be prepared for emergencies. Budgeting will help address bad spending habits.
Detailed explanation-5: -Step 1: Calculate your net income. The foundation of an effective budget is your net income. Step 2: Track your spending. Step 3: Set realistic goals. Step 4: Make a plan. Step 5: Adjust your spending to stay on budget. Step 6: Review your budget regularly.