ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

You are placed in charge of your household budget for the month. What is one of the first things you should examine as you plan the budget?

A	The number of visitors you will have in the next month
B	The average income for your neighborhood
C	The number of chores each person has
D	The income for the household

Explanation:

Detailed explanation-1: -Housing (renting or mortgage payments) Housing, whether for rent or mortgage payments, is going to take up the largest percentage of your income.

Detailed explanation-2: -Calculate your monthly income, pick a budgeting method and monitor your progress. Try the 50/30/20 rule as a simple budgeting framework. Allow up to 50% of your income for needs. Leave 30% of your income for wants. Commit 20% of your income to savings and debt repayment. More items •02-Dec-2022

Detailed explanation-3: -Start saving now. Financial advisors recommend having at least three months’ salary saved in case of emergency. Track your income and expenses. Set goals. Follow the 50/30/20 rule. Track your spending. Get everyone involved. Know your credit score. Schedule bill-paying days. More items

Detailed explanation-4: -Calculate your net income. List monthly expenses. Label fixed and variable expenses. Determine average monthly costs for each expense. Make adjustments.

There is 1 question to complete.