ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
by averaging income over several weeks
|
|
|
by estimating income over several weeks
|
|
|
by averaging income over several months
|
|
|
by estimating income over several months
|
Detailed explanation-1: -One of the most common percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it’s right for you.
Detailed explanation-2: -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-3: -Define your essential monthly expenses. Track your spending meticulously. Estimate your lowest monthly income. Identify non-essential expenses. Consider building an emergency fund. Keep your budget accessible. Don’t get discouraged-keep budgeting! Keep your cash safe.
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