ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Keep some extra money in your budget for emergencies
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Think about which items are your most important needs
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Pay with a credit card if you have a hard time sticking to a budget
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Revisit your budget regularly and make adjustments
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Detailed explanation-1: -Answer and Explanation: The correct answer is option b. pay with a credit card if you have a hard time sticking to a budget.
Detailed explanation-2: -Budgeting with a credit card may seem like a contradiction in terms. But using a credit card can actually be very beneficial to your financial plan. Responsible credit card usage can build your credit and will likely save you money next time you purchase a car or refinance your house.
Detailed explanation-3: -There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based. These four budgeting methods each have their own advantages and disadvantages, which will be discussed in more detail in this guide.
Detailed explanation-4: -In the 50/20/30 budget, 50% of your net income should go to your needs, 20% should go to savings, and 30% should go to your wants. If you’ve read the Essentials of Budgeting, you’re already familiar with the idea of wants and needs. This budget recommends a specific balance for your spending on wants and needs.