ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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time
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needs
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money
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budget
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Detailed explanation-1: -When planning your budget, needs are expenses necessary to survive such as housing, food and utilities. Wants are expenses that better your life but that you can do without. Understanding the difference between needs vs. wants will help you manage your budget and prioritize your spending.
Detailed explanation-2: -Needs are those bills that you absolutely must pay and are the things necessary for survival. These include rent or mortgage payments, car payments, groceries, insurance, health care, minimum debt payment, and utilities.
Detailed explanation-3: -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. By regularly keeping your expenses balanced across these main spending areas, you can put your money to work more efficiently.
Detailed explanation-4: -The three types of annual Government budgets based on estimates are Surplus Budget, Balanced Budget, and Deficit Budget.