ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget can help you buy wisely and avoid credit problems. An expense is the amount of money you plan to use for a certain budget category. A difference between actual spending and budgeted spending is called a budget variance. Using your checkbook as a budgeting system does not serve the planning for spending.

Detailed explanation-2: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

Detailed explanation-3: -If you are planning to improve your Experian credit score in 2022, then budgeting is the ideal way to manage money, curb overspending, pay down debt, and stay consistent with your bill payments. All these steps are crucial to boosting your credit score and streamlining your financial future.

Detailed explanation-4: -A budget is a plan that shows you how you can spend your money every month. Making a budget can help you make sure you do not run out of money each month. A budget also will help you save money for your goals or for emergencies.

Detailed explanation-5: -Budgeting ensures you’re not spending more than you’re making, allowing you to plan for short-and long-term expenses. It’s an easy, helpful way for people with all types of income and expenses to keep their finances in order.