ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -A budget is a plan you write down to decide how you will spend your money each month. A budget helps you make sure you will have enough money every month.
Detailed explanation-2: -A spending plan is a method for distributing your income among the mix of things you want and need. Creating a spending plan ahead of time will allow you to effectively manage your finances and determine where to best spend your money.
Detailed explanation-3: -The standard salary to commission ratio is 60:40 with 60% being the base rate and 40% being commission-driven. The plan best serves as an incentive or motivation for increased sales performance. Example: A salesperson earns $500 a month in salary with 10% commission, or $500, for $5, 000 worth in sales.
Detailed explanation-4: -Make a personal budget. Track your spending. Save for retirement. Save for emergencies. Plan to pay off debt. Establish good credit habits. Improve your money mindset.