ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

Detailed explanation-2: -A financial goal is a target to aim for when managing your money. It can involve saving, spending, earning, or even investing. Creating a list of financial goals is vital to creating a budget. When you have a clear picture of what you’re aiming for, working towards your target is easy.

Detailed explanation-3: -They make it easier for you to make sacrifices or stick to a budget because you know what outcome you’re striving for. They help you keep focused on the long term. Motivation – financial goals provide purpose and energy and help you stay disciplined in your investment process.

Detailed explanation-4: -List and prioritize your financial goals. Take care of the financial basics. Connect each financial goal to a deeper motivation. Make a financial plan to reach your financial goals. Revisit your financial goals regularly.