ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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People who budget earn more money, so they can live a better life
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A budget puts you in control of your spending and saving, so you make good decisions and feel more confident
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You can’t really budget unless you have an important job, which means that other people look up to you
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Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things
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Detailed explanation-1: -Budgeting can help you gain a feeling of control over your money. It allows you to prioritize your spending, track how you are doing, and realize when you need to make changes. A budget puts a solid plan into place that is easy to follow and gives you the chance to plan and prepare for the future.
Detailed explanation-2: -Having a budget keeps your spending in check and makes sure that your savings are on track for the future. Budgeting can help you set long-term financial goals, keep you from overspending, help shut down risky spending habits, and more.
Detailed explanation-3: -Benefits of budgeting include providing “guardrails” (i.e., designated limits) for spending, achieving financial goals (if savings is included as a fixed “expense"), and for peace of mind.
Detailed explanation-4: -Step 1: Calculate your net income. The foundation of an effective budget is your net income. Step 2: Track your spending. Step 3: Set realistic goals. Step 4: Make a plan. Step 5: Adjust your spending to stay on budget. Step 6: Review your budget regularly.