ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The first step in planning a budget is
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to review your spending and saving patterns.
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to set your financial goals.
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to estimate your income.
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Detailed explanation-1: -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.
Detailed explanation-2: -The first step is to calculate how much money you have coming in each month. This might be investment income, government assistance, student loans, employment income, disability benefits, retirement pensions or money from other sources.
Detailed explanation-3: -Step 1: Take an inventory of your finances To get started, take out some paper or open a document and list out your: Major assets, such as an estimate of the equity in your home, car, checking accounts, savings accounts, retirement accounts, and investment accounts.
Detailed explanation-4: -Before you set up your budget, you are going to want to figure out your goals.
Detailed explanation-5: -The first and foremost step in budgeting is developing a list of the goals for the arrangement and allocation of financial resources. It is necessary to plan the various objectives for undertaking the budgeting activity.