ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Jeremy carefully tracks his expenses.
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Lisa spends less money than she earns.
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Kaori does not have enough money to pay bills.
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Chandler is saving for a major purchase.
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Detailed explanation-1: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Detailed explanation-2: -A budget helps you to set financial goals and save up for them-be it saving up the down payment for a home loan, for children’s education or for a business that you plan to start. A budget can help you redirect your money from unnecessary spending to important goals.
Detailed explanation-3: -Puts You In Control of Your Money. You Become Aware of Your Spending Habits. Helps you set priorities. Lets you prioritize saving and investing. Ensure you get control of debt or avoid future bad debt. Helps you be prepared for unexpected emergencies. Budgeting helps your family talk about money. More items •24-Mar-2021
Detailed explanation-4: -You don’t make enough money. There are only so many ways you can reduce your expenses and cost cut. You’re contributing too much to your 401k. You didn’t financially prepare to take on dependents. You’re too emotionally drained by having debt. 28-Oct-2022