ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Budgeting is crucial to your financial success. Writing and following a zero-based budget will help you avoid overspending and impulse purchases. A debit card cannot be used for online purchases. “Pay yourself first” means you should assign a portion of your income to saving and investing every month.

Detailed explanation-2: -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-3: -Budgeting is important for your financial stability, ensuring you can pay common expenses like rent, tuition, student loans, credit card bills, and entertainment.

Detailed explanation-4: -A budget is a tool to track when and how you earn or spend money. Creating a budget is an important pillar of your overall success and security. It allows you to oversee and better understand whether your business has enough revenue (incoming money) to pay its expenses.

Detailed explanation-5: -A detailed and realistic budget is one of the most important tools for guiding your business. A budget provides essential information for operating within your means, managing unexpected challenges, and turning a profit. A proper budget will identify available capital, estimate expenditures, and anticipate revenues.