ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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her total savings over the last year
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the price of a new bicycle she wants
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a birthday gift of $50.00 from her grandfather
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None of the above
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Detailed explanation-1: -Step 1: Calculate your net income 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: -Personal budgets apply to how you spend your personal income. Typical budget categories might include housing, utilities, groceries, and transportation. For a personal budget, most people try to reduce debt such as loans and credit cards, and may emphasize saving for retirement or emergency funds.
Detailed explanation-3: -Try a simple budgeting plan. We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment.
Detailed explanation-4: -Fixed expenses, like rent, stay the same month-to-month. Variable expenses, like food and groceries, can vary month-to-month, and generally aren’t due on a set date. Periodic expenses include expenses that are billed quarterly or annually, as well as expenses like vehicle maintenance that come up now and then.