ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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writing down your monthly expenses.
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making a list of everything you want.
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finding how much college will cost.
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none of these.
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Detailed explanation-1: -Why Is a Budget Important? A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home.
Detailed explanation-2: -Focus on eliminating debt, starting first with the loans with the highest interest rates. Your rent or mortgage payment should equal 25-30% of your income. If you don’t own a home, you may want to work toward saving for a down payment. Aim to save 15% of your income for retirement.
Detailed explanation-3: -While your budget shouldn’t change too much from month to month, the fact is, no two months are exactly the same. That’s why you create a new budget every single month-before the month begins.
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.