ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -most short-term goals are based on activities over the next two or three years. Assess your personal and financial situation (needs, values, life situation). Set personal and financial goals. Create a budget for fixed and variable expenses based on projected income.

Detailed explanation-2: -Short term goals may be to buy a car, pay for a wedding or vacation, or pay for some home repairs. Longer term goals may be to get out of debt-like paying off credit cards or a home equity line of credit-paying for your child’s education or saving for retirement. Or maybe it’s to buy a vacation home.

Detailed explanation-3: -Short-term cash budgets aim to solve cash requirements on a weekly or monthly basis. These budgets help forecast the payments that need immediate fund allocation and identify sources that can help offset this requirement.

Detailed explanation-4: -Typically, they do not change, and you pay the same amount for these expenses every month. For example, lease agreements, mortgage payments, and car insurance generally have contracts with set payment amounts that do not vary from month to month. Your payments would only change if the terms of the contract changed.