ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -By rearranging, we are essentially prioritizing savings over spending. This literally means, the moment we draw our salary, we first divert the funds towards savings and spend whatever is left after saving.

Detailed explanation-2: -Subtract your spending from your income to figure how much you’re saving, then divide this number by your income.

Detailed explanation-3: -Income refers to total profits (net income) after subtracting expenses from revenue. Below is a simple way of calculating total expenses from revenue, owner’s equity, and income: Net income = End equity-Beginning equity (from the balance sheet) Total Expenses = Net Revenue-Net Income.

Detailed explanation-4: -The next time you think about your bills, expenses and obligations, factor savings into your budget as an expense category and pay yourself first. Regardless of how you save or what kind of account you put your saved money into, make the choice to give yourself money to spend later.

Detailed explanation-5: -a way of measuring quantitatively, without relying on an individual’s conscious memory, how much learned material is retained.