ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Fixed essential
|
|
|
Variable essential
|
|
|
Non-variable
|
|
|
Non-essential
|
Detailed explanation-1: -Some needs to consider are food, rent or mortgage, utilities, and other expenses. Transportation costs, insurance coverage, and any clothing and tools you need for work are included in this part of your budget. A want includes expenses that you can comfortably live without and is not essential for survival.
Detailed explanation-2: -The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.
Detailed explanation-3: -In its simplest form, a budget plans for and compares income and expenses over a specified time period. Budgets require you to subtract expenses from income. If you have money left, you have a surplus.
Detailed explanation-4: -Step 1: Calculate your net income. The foundation of an effective budget is your net income. Step 2: Track your spending. Step 3: Set realistic goals. Step 4: Make a plan. Step 5: Adjust your spending to stay on budget. Step 6: Review your budget regularly.