ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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saves plenty of his income regularly each month
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always seems to have plenty of money for activities
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knows exactly what his expenses are each month.
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struggles to understand why it is so hard to pay his bills.
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Detailed explanation-1: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Detailed explanation-2: -In the most basic form of creating a personal budget the person needs to calculate their net income, track their spending over a set period of time, set goals based on the information previously gathered, make a plan to achieve these goals, and adjust their spending based on the plan.
Detailed explanation-3: -Indecisiveness is one of the biggest challenges of budgeting, but with a little financial motivation, you can successfully tackle this budget challenge. There are a couple of ways to combat financial indecisiveness.
Detailed explanation-4: -A budget helps you to set financial goals and save up for them-be it saving up the down payment for a home loan, for children’s education or for a business that you plan to start. A budget can help you redirect your money from unnecessary spending to important goals.