ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
It allows you to delete categories you don’t like.
|
|
|
It gives you insight into whether you’re sticking to the budget you set.
|
|
|
It helps you pull money from your savings to spend in other categories.
|
|
|
It really isn’t that important in the long run.
|
Detailed explanation-1: -The main reason you should track your expenses is to identify and eliminate wasteful spending habits in your financial life. Moreover, consistently tracking your expenses will help you maintain control of your finances, and promote better financial habits like saving and investing.
Detailed explanation-2: -Tracking your spending on a regular basis can give you an accurate picture of where your money is going-and where you’d like it to go instead. Then, by using a budget, you can accurately account for all the bills you need to pay going forward.
Detailed explanation-3: -A project budget outlines the expected income, expenses, and profit for your project. Project budget tracking enables you to monitor how much of your budget has been spent over time, to see how much is remaining and course-correct when necessary.
Detailed explanation-4: -The record of your earnings and expenses on your Income and Expense Statement ensures that your Spending Plan is realisc. helps develop personalized Spending Plans, as well as financial statements, tax reports and other personal finance reports.
Detailed explanation-5: -Also known as expense manager and money manager, an expense tracker is a software or application that helps to keep an accurate record of your money inflow and outflow. Many people in India live on a fixed income, and they find that towards the end of the month they don’t have sufficient money to meet their needs.