ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you write a zero-based budget every month, it is not necessary to reconcile your account. Budgeting is crucial to your financial success. Writing and following a zero-based budget will help you avoid overspending and impulse purchases. A debit card cannot be used for online purchases.

Detailed explanation-2: -The aim of a zero-based budget is to make sure that your income, minus all your overheads, equals zero (income – expenses = zero). This method of budgeting allows you to easily adapt your budget each month if your expenses change.

Detailed explanation-3: -Zero-based budgeting is when your income minus your expenses equals zero. Perfect name, right? So, if you make $3, 000 a month, everything you give, save or spend should add up to $3, 000. Every dollar that comes in has a purpose, a job, a goal.

Detailed explanation-4: -Zero-based budgeting allocates every dollar of income. It’s different from traditional budgeting because it starts with a new budget, typically each month, instead of using the previous budget as a starting point. Zero-based budgeting can help you make thoughtful decisions about how to use income.

Detailed explanation-5: -Start. Begin at ground zero. Evaluate. Evaluate every cost area. Justify. Account for all components of the budget. Streamline. Determine what activities should be performed and how. Execute. Roll out comprehensive planning and execution processes.