ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Write a new lease so she is paying 25% less in rent each month
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Start packing her lunch from home every day instead of dining out
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Quit her job so she an look for one that pays more
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Stop paying her credit card bill and put the money into savings
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Detailed explanation-1: -Try the 50/30/20 rule as a simple budgeting framework. Allow up to 50% of your income for needs. Leave 30% of your income for wants. Commit 20% of your income to savings and debt repayment.
Detailed explanation-2: -The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.
Detailed explanation-3: -Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses? Money that is earned from work, investments, business, etc.
Detailed explanation-4: -Establish a baseline monthly income. This is your “I can count on earning this much no matter what” income. Make a list of required monthly expenses. Pinpoint other monthly expenses. Use your baseline income. Include additional earnings. Create a buffer account for low months. 12-Oct-2022