ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Needs are those bills that you absolutely must pay and are the things necessary for survival. These expenses can include rent or mortgage payments, car payments, groceries, insurance, health care, minimum debt payment, and utilities.

Detailed explanation-2: -Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.

Detailed explanation-3: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

Detailed explanation-4: -Record your expenses. The first step to start saving money is figuring out how much you spend. Include saving in your budget. Find ways to cut spending. Determine your financial priorities. Pick the right tools. Make saving automatic. Watch your savings grow.