ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cash flow statement
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financial goals
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estimated expenses
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emergency fund
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Detailed explanation-1: -The foundation of an effective budget is your net income. That’s your take-home pay-total wages or salary minus deductions for taxes and employer-provided programs such as retirement plans and health insurance.
Detailed explanation-2: -1) Identify your Financial Situation The first stage of the financial planning process constitutes assessment on what is happening in your life right now and how you can change your financial situation.
Detailed explanation-3: -Define your goal clearly. A goal is the first step that sets you on a path. Identify your time frame. Categorizing your objectives by short-term, medium-term, and long-term financial goals provides focus to your plan. Monitor your progress.
Detailed explanation-4: -Assess your financial resources. The first step is to calculate how much money you have coming in each month. Determine your expenses. Next you need to determine how you spend your money by reviewing your financial records. Set goals. Create a plan. Pay yourself first. Track your progress.