ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Family goal (savings)
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Net Income
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Fixed and flexible expenses
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Amount to be spent Food
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Gross Income
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Detailed explanation-1: -Gross income is calculated as the total amount of revenue earned before subtracting expenses like costs, interest, and taxes.
Detailed explanation-2: -Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account.
Detailed explanation-3: -Extra Paychecks. Depending on your pay schedule, some months out of the year will give you an extra paycheck. Income Tax Refund. Bonuses. Side Hustle Income. Any Other Income that is Not Permanent.
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.