ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Detailed categories on your budget will help you make better spending decisions. A budget says what will happen with your money, while a cash-flow statement shows what already happened. How many months does it usually take for your budget to start working as a budget should?

Detailed explanation-2: -Start with a financial self-assessment. Once you know where you stand and what you hope to accomplish, pick a budgeting system that works for you. We recommend the 50/30/20 system, which splits your income across three major categories: 50% goes to necessities, 30% to wants and 20% to savings and debt repayment.

Detailed explanation-3: -Income: This is the money you receive from any sources, such as a paycheck, student loans, scholarships, or a birthday gift. Expenses: These are all the things you spend money on. Savings/Investment: Your financial goals, retirement accounts, and other savings or investment accounts.

Detailed explanation-4: -Prioritizing bills and expenses in order of importance lets you meet basic needs, protect your credit, and lower your financial stress. This, in turn, allows you to focus on finding ways to cut costs or increase your income so you can pay all of your bills each month and even start saving for the future.

Detailed explanation-5: -Housing (25-35 percent) Transportation (10-15 percent) Food (10-15 percent) Utilities (5-10 percent) Insurance (10-25 percent) Medical & Healthcare (5-10 percent) Saving, Investing, & Debt Payments (10-20 percent) Personal Spending (5-10 percent) More items •28-Feb-2023