ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buying a pair of shoes you just couldn’t resist.
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Not using a personal financial planning website or software.
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Failing to establish an emergency fund to account for unforeseen expenses.
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Not making enough money.
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Detailed explanation-1: -When you analyze it, there are really three reasons why people are unsuccessful in budgeting. The most common causes of failure are unrealistic goals, quitting too soon and misunderstanding what a budget really is.
Detailed explanation-2: -What is the most likely reason for a budget to fail? not establishing emergency fund for unforeseen expenses.
Detailed explanation-3: -What are unexpected expenses? An unexpected expense is an expense that comes as a total surprise. You didn’t see it coming and couldn’t predict that it was going to happen. Examples can include things like health emergencies, emergency home repairs and parking tickets.
Detailed explanation-4: -Rigid Decision-Making. Time Required to Complete the Budget. Gaming the System. Blame for Outcomes. Expense Allocations. Use It or Lose It. Only Considers Financial Outcomes. 16-May-2022