ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$125
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$150
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$200
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$250
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Detailed explanation-1: -Finally, try to allocate 20% of your net income to savings and investments. This includes adding money to an emergency fund in a bank savings account, making IRA contributions to a mutual fund account, and investing in the stock market.
Detailed explanation-2: -By age 25, you should have saved about $20, 000. Looking at data from the Bureau of Labor Statistics (BLS) for the third quarter of 2022, the median salaries for full-time workers were as follows: $690 per week, or $35, 880 each year for workers ages 20 to 24.
Detailed explanation-3: -Once you’ve calculated the net income (profit), simply divide this amount by the total revenue. To convert it to a percentage, multiply by 100.
Detailed explanation-4: -At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.