ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -The first reason people avoid budgets is because it has a straight-jacket connotation. They think they can’t do anything if they’re on a budget. Another reason people avoid budgets is because they never had one that works.
Detailed explanation-2: -They believe they know where their money is going even if they had no money left before their next pay check. Most people believe that they aren’t earning enough to meet their expenses when the actual problem is that they are not budgeting their spending.
Detailed explanation-3: -A budget does not give greater control to lower management.
Detailed explanation-4: -A budget is how you keep track of your money and make sure you’re in the driver’s seat of where it’s going. It helps you with all your financial goals-especially paying off debt. Remember: A budget gives you freedom to spend (while also making sure you’re not throwing your money away every month).
Detailed explanation-5: -Stephen Covey said, “Highly effective people are proactive. They happen to things."