ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a monthly or yearly spending and savings plan for an individual, family, business, or organization
|
|
|
a written document telling the financial institution to pay a specific amount of money from your account to a specific person or organization
|
|
|
a card that can be used to borrow money from financial institutions, stores, or other businesses in order to buy products and services on credit
|
|
|
a card that is linked to your checking account so that a person can withdraw money, make deposits, or make purchases at a store
|
Detailed explanation-1: -The primary approach is to divide after-tax income into three categories and spend 50% on necessities, 30% on desires, and 20% on savings. This can help you go a long way while creating a family budget.
Detailed explanation-2: -A family budget is a statement which shows how family income is spent on various items of expenditure on necessaries, comforts, luxuries, and other cultural wants. It shows the distribution of the family income over the various items of expenditure.
Detailed explanation-3: -The 50/30/20 budget method puts 50% of your income for essential bills like insurance and mortgage, 30% into “fun” or luxury spending, and 20% into savings or debt. If family budgeting feels overwhelming to you that you procrastinate actually doing it, a 50/30/20 plan may be a good place to start.
Detailed explanation-4: -Analyze costs. Negotiate costs with suppliers. Estimate your revenue. Know your gross profit margin. Project cash flow. Factor in seasonal and industry trends. Set spending goals. Bring it all together.