ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The EveryDollar budget is a software and budgeting method created by personal finance expert Dave Ramsey. While Ramsey’s software has some unique features, the EveryDollar budget is essentially a zero-based budget. The goal is to assign a job to every dollar you earn. By the end of the month, no money is unassigned.

Detailed explanation-2: -In a zero-based budget, every single dollar of your income is assigned to a specific expense, leaving you with a balance of $0. This method requires you to anticipate all of your upcoming expenses so that you can allot your income to the appropriate expenses.

Detailed explanation-3: -Zero-based budgeting is a budgeting method that enables you to account for every penny that comes into your household. Made popular by Dave Ramsey, the zero-based budgeting method is the most accurate method for managing your money. This method requires you to “give every dollar a name, ” as Dave would put it.

Detailed explanation-4: -A budget is just a plan. It’s not a restriction on spending-it’s a plan for what you’ll do with your money. It’s a plan for what’s coming in and what’s going out.