ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance & adjust your budget
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Set short & long-term goals
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Determine your financial situation
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Estimate expenses
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Detailed explanation-1: -Make adjustments. The last step in creating a budget is to compare your net income to your monthly expenses. If you notice that your expenses are higher than your income, you’ll need to make some adjustments.
Detailed explanation-2: -Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and accountability. While distinctly separate, these processes overlap in the implementation during a budget year.
Detailed explanation-3: -Step 1: Set Realistic Goals. Step 2: Identify your Income and Expenses. Step 3: Separate Needs and Wants. Step 4: Design Your Budget. Step 5: Put Your Plan Into Action. Step 6: Seasonal Expenses. Step 7: Look Ahead.
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.
Detailed explanation-5: -Review financial reports. Compare actual values to last year’s budget. Create a financial forecast. Identify expenses. Estimate revenue. Subtract projected expenses from estimated revenues. Lock budget, measure progress and adjust as needed. 03-Feb-2023