ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase savings.
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cut expenses.
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increase expenses.
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reduce savings.
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Detailed explanation-1: -When expenses exceed income, three alternatives are recommended: increase income, reduce expenses, or a combination of the two. To understand where your money is going and to identify ways to cut back, consider tracking your expenses for a month or two.
Detailed explanation-2: -The savings contributions are automatically routed from each paycheck to your savings or investment account, that is you are paying yourself first. In other words, you are paying yourself before paying the monthly expenses and making discretionary purchases.
Detailed explanation-3: -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. By regularly keeping your expenses balanced across these main spending areas, you can put your money to work more efficiently.
Detailed explanation-4: -Keep Track of Your Spending Habits. If you’ve ever had a toddler in the house, you know how they can disappear if you aren’t keeping a close eye on them. Create a Budget. Update Subscriptions. Save on Utility Costs. Cheaper Housing Options. Consolidate Debts. Shop for Cheaper Insurance. Eat at Home. More items •10-Feb-2023