ECONOMICS (CBSE/UGC NET)

Previous
Next

ECONOMICS

BUDGETING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
You are putting together your first post-graduation budget. Your take-home or net pay will be $2, 500 per month. You estimate your monthly costs to be rent of $800, car payment of $350, car insurance of $150, car maintenance of $50, entertainment of $500, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $100 and other expense of $300. How would you describe your budget after analyzing all of your income and expenses?
A
You have a surplus of $175
B
You have a deficit of $175
C
You have a deficit of $2, 675
D
You have a surplus of $2, 500
Explanation: 

Detailed explanation-1: -By Melissa Green | Citizens Bank Staff One of the most common percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.

Detailed explanation-2: -Our 50/30/20 calculator divides your take-home income into suggested spending in three categories: 50% of net pay for needs, 30% for wants and 20% for savings and debt repayment. Find out how this budgeting approach applies to your money. Monthly after-tax income. Do you know your “want” categories?

Detailed explanation-3: -Popularized by Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan, this budgeting rule involves putting 50% of your after-tax income into mandatory living expenses or needs, 30% into wants, and 20% toward savings and debt repayment.

Detailed explanation-4: -Monthly 50/30/20 budget worksheet. Keep your monthly budget and savings on track and on target with the 50/30/20 approach. Designate 50% of your income to needs (mortgage/rent, utilities, car payments), 30% to wants (travel, concerts, fashion splurges) and 20% goes directly to your savings account(s) and debts.

There is 1 question to complete.
Previous
Next