ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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clothes and shoes
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games and grades
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needs and vacation
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wants and needs
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Detailed explanation-1: -Zero-based budgeting is the ultimate budget for those who want to be completely in control of their money. It allows you to micromanage your money-in a good way-as you see fit. You get to decide in advance where every one of your dollars gets to be spent.
Detailed explanation-2: -There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based. These four budgeting methods each have their own advantages and disadvantages, which will be discussed in more detail in this guide.
Detailed explanation-3: -How to Budget for Needs and Wants. By following the 50-30-20 rule, you can simplify your budget. It states that 50% and 30% of your budget should go towards needs and wants, respectively, with the remaining 20% designated for your savings or to pay off your debt.
Detailed explanation-4: -An effective budget provides more than a forecast or tracking of income and expenses. A small business can use its budget to stay on top of financial trends it can use to take advantage of unexpectedly good performance and react in time to downturns in cash flow.