ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Will something bad happen if I don’t have this item?
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Do any of my friends have this item?
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How happy will this item make me?
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Will my teachers be excited if I buy this item, or will they be disappointed?
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Detailed explanation-1: -Understanding the difference between needs vs. wants will help you manage your budget and prioritize your spending. Needs are essential to live comfortably, but wants are often expenses that you can do without.
Detailed explanation-2: -Some needs to consider are food, rent or mortgage, utilities, and other expenses. Transportation costs, insurance coverage, and any clothing and tools you need for work are included in this part of your budget. A want includes expenses that you can comfortably live without and is not essential for survival.
Detailed explanation-3: -What is my income? What are my debts? What are my expenses? Does it add up and, if needed, what can I change? What are my priorities? More items
Detailed explanation-4: -Step 1: Build A Forecast And Budget For The Year. Before enforcing any budget, you need to set one up. Step 2: Make Sure You Have Accurate Bookkeeping. Step 3: Track Actuals Versus Budget. Step 4: Identify Time Periods For Setting Your Budgets.