ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You will think about what you need and want and plan how to spend your money.
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You will buy whatever you want.
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You will buy things whenever you want.
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You will starve because you don’t have food.
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Detailed explanation-1: -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. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Detailed explanation-2: -It helps to measure and evaluate goals. With a good budget, you not only know how much you need to spend, but you have a clear picture of how much you need in terms of revenue to break even. With proper cost planning, it’s easier to see if you’re staying on track and whether you need to take corrective action.
Detailed explanation-3: -A budget is a plan you write down to decide how you will spend your money each month. A budget helps you make sure you will have enough money every month. Without a budget, you might run out of money before your next paycheck.
Detailed explanation-4: -Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
Detailed explanation-5: -Try a simple budgeting plan. We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment.