ECONOMICS
MONEY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Pay yourself first
|
|
|
Buy some new sneakers
|
|
|
Go to the movies
|
|
|
None of the above
|
Detailed explanation-1: -The advantage of paying yourself first out of your paycheck is that you build up wealth to secure your future and create a cushion for financial emergencies, such as car break down, financial crisis, or unexpected medical expenses.
Detailed explanation-2: -Put it in your savings account A big chunk of your first salary should be deposited in a bank. If you do not have a bank account yet, open one. It’s one of the things that will help you manage your money.
Detailed explanation-3: -What does “pay yourself first” mean? Paying yourself first simply means that you make it a habit to put money into your savings account first-as soon as you get paid, and before you have time to spend it on other things. By making saving your first priority, you make sure it gets done.
Detailed explanation-4: -“Pay yourself first” was a phrase which was first used in a book called The Richest Man in Babylon. But this simple statement has been converted into a profound personal finance rule by Robert Kiyosaki.
Detailed explanation-5: -Pay Down Debt. Invest in Yourself. Invest in the Stock Market. Open a High-Interest Savings Account. Start an Emergency Fund. Buy a Home Instead of Renting. Start a Business. Invest in Other Businesses. More items