ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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keeping a diary of expenses
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asking a friend to make it for you
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deciding what to purchase when you go to the store
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checking how much money is in your pocket
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Detailed explanation-1: -In order for it to work you must write down absolutely everything you spend and how you pay for it e.g. cash, debit or credit card. If you forget to carry your spending diary with you make sure you keep receipts for the items you have bought and enter the information into your spending diary at the end of the day.
Detailed explanation-2: -What is a spending journal, aka a spending diary? A spending diary is a documentation of every single expenditure you make on a daily basis over a period of time. For instance, over a 30 day period.
Detailed explanation-3: -A spending plan should include all of your money coming in, money going out, and money put towards savings. True, in addition to regular monthly payments such as rent and bills, a spending plan should also include irregular payments such as family trips, medical co-pays and deposits to savings.
Detailed explanation-4: -List your income. List your expenses. Compare your income and expenses. List your resources and set priorities.