ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They rented a smaller apartment to save on rent
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They decided not to go to school
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The stopped paying the electric bill
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They charged the overages on a credit card
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Detailed explanation-1: -The main objective of creating a budget is to inculcate discipline so that you can achieve your key goals. Hence, it will help if you identify all of these, be it buying a house, funding your children’s higher education, taking a vacation or saving for your retirement.
Detailed explanation-2: -As Dave Ramsey lists them, the four walls are food, shelter (including utilities), transportation, and basic clothing. Ramsey recommends these be the first items on your budget especially when you have, “more month than money”.
Detailed explanation-3: -The EveryDollar budget is a software and budgeting method created by personal finance expert Dave Ramsey. While Ramsey’s software has some unique features, the EveryDollar budget is essentially a zero-based budget. The goal is to assign a job to every dollar you earn. By the end of the month, no money is unassigned.
Detailed explanation-4: -Step 1: Calculate your net income. The foundation of an effective budget is your net income. Step 2: Track your spending. Step 3: Set realistic goals. Step 4: Make a plan. Step 5: Adjust your spending to stay on budget. Step 6: Review your budget regularly.