ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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apply for a loan
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reduce or eliminate some expenses
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ignore her budget until she has more income
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open a investment account
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Detailed explanation-1: -Need to be realistic, have a target date, and, if possible, an associated cost. In creating her budget, Ann realizes that her expenses exceed her income. Ann should immediately try to: reduce or eliminate some expenses.
Detailed explanation-2: -If your deductions exceed income earned and you had tax withheld from your paycheck, you might be entitled to a refund. You may also be able to claim a net operating loss (NOLs). A Net Operating Loss is when your deductions for the year are greater than your income in that same year.
Detailed explanation-3: -If your costs exceed income, you have a deficit. If spending and income are equal, that’s a balanced budget.
Detailed explanation-4: -How to budget your money with the 50/30/20 rule. The 50/30/20 rule simplifies budgeting by dividing your after-tax income into just three spending categories: needs, wants and savings or debts.
Detailed explanation-5: -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.