ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The biggest budgeting mistakes to avoid are estimating costs, forgetting to account for all your expenses, being overly restrictive and leaving savings out of your budget. Fortunately, they’re all avoidable.

Detailed explanation-2: -All the money you receive, including money from your job and gifts like birthday money. The primary reason people don’t budget is because they lack the behavior to stick to a budget. How many months does it usually take for your budget to start working as a budget should?

Detailed explanation-3: -Generally, the bills you should pay first are the ones that cover necessities-the main resources that keep you and your family safe and healthy. These necessities include shelter, water, heat and food. Once necessities are paid for, focus on expenses related to your vehicle.

Detailed explanation-4: -Step 1: Set S.M.A.R.T. Goals. Step 2: Determine Your Net Income. Step 3: Add Up Mandatory Expenses. Step 4: Calculate What You Need to Save. Step 5: Divvy Up Discretionary Spending. Step 6: Select Your Budgeting Software. Step 7: Schedule a Weekly Money Date.