ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Record what you spend
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Estimate your income
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Set financial goals
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Review and evaluate monthly
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Detailed explanation-1: -1. Assess your financial resources. The first step is to calculate how much money you have coming in each month. This might be investment income, government assistance, student loans, employment income, disability benefits, retirement pensions or money from other sources.
Detailed explanation-2: -1. Create and stick to a budget. Not only is budgeting one of the top financial goals people set each new year, but it’s also the foundation you should build all your other money goals on. A budget is how you make progress with your money.
Detailed explanation-3: -1. Assess your financial situation and typical expenses. An important first step is to take stock of your current financial situation. Even if you’re not where you’d like to be, be honest with yourself about the income you’re currently generating, savings you’ve accumulated and your general spending habits.
Detailed explanation-4: -Calculate your net income. List monthly expenses. Label fixed and variable expenses. Determine average monthly costs for each expense. Make adjustments.
Detailed explanation-5: -Envision your short-and long-term future. Categorize financial goals as short-, mid-, or long-term. Set a target date for your financial goals. Prioritize your financial goals: Critical, need, or want. Layer in the current state of your savings. 18-Oct-2022