ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A complicated budget is more likely to motivate you to achieve your financial goals. Consolidating debts into a larger payment can help when you need to modify your fixed expenses. Include expected or estimated income and known or estimated expenses when creating an ongoing goal chart.

Detailed explanation-2: -Having a budget in place will allow you to maximize your income – paying down debt, building your savings, and achieving financial health. A budget also helps you identify areas where you can cut back spending, freeing up more money for savings goals or paying down debt.

Detailed explanation-3: -Not only is budgeting one of the top financial goals people set each new year, but it’s also the foundation you should build all your other money goals on. A budget is how you make progress with your money. It’s a plan for what’s coming in (your income) and what’s going out (your expenses).

Detailed explanation-4: -Budgeting is a fundamental financial planning practice and, without a budget, it is hard to manage other aspects of personal finance including credit, insurance, saving, investing, and achieving goals such as a new car or a comfortable retirement.

Detailed explanation-5: -When you analyze it, there are really three reasons why people are unsuccessful in budgeting. The most common causes of failure are unrealistic goals, quitting too soon and misunderstanding what a budget really is.