ECONOMICS
DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Make a goal to reduce debt now.
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Choose only one item to spend money on
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Don’t worry about it and take your time to pay it off.
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List the long-term benefits and obstacles of being in debt.
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Detailed explanation-1: -A friend of yours has made some poor choices with spending, including overspending on a credit card. What would be the BEST advice to offer your friend? Make a goal to reduce debt now. Don’t worry about it and take your time to pay it off.
Detailed explanation-2: -Fun money isn’t an excuse to be wasteful-it’s another way to stick to your budget. Remember, you want a zero-based budget, so you should give every single dollar a job. And a fun money line makes you focus all your spending-even the fun stuff-so you don’t accidently waste money on little things here and there.
Detailed explanation-3: -Money management deals with deciding how much money to retain in a liquid form and how to allocate the funds among short-term investment instruments. Credit management deals with decisions about how much credit you need to support your spending and which sources of credit to use.
Detailed explanation-4: -Avoid judgment. Make the problem real. Don’t compare your spending to theirs. Talk to a professional. Set boundaries. Create financial goals. Summary. 18-Apr-2019
Detailed explanation-5: -Check if you’re leaking money via unused subscriptions & payments. Then take it up a notch and ask yourself if you REALLY need it. Block notifications and emails from shops, takeaway services and more. Stop spending so much on food – plan, plan, plan. Leave debit/credit cards at home. More items •30-Dec-2022