Question

state the various essential elements of budget​

Answer 1

The various essential elements of budget are:

• Every budget's most basic component is income.
• We should keep track of our earnings and where they originate.
• Make a list of your pre-tax and after-tax income.
• Fixed expenses are those that you have limited control over or cannot change.
• For example, your mortgage is a fixed cost, however, your Netflix membership is not.
• Once you've removed the value of your fixed expenses from your income, you'll have a better notion of the third basic element: flexible expenses.
• Flexible costs are products that you want to buy but don't require.
• Purchasing concert tickets, going out to dinner, and buying new clothes are all examples of flexible spending.
• Savings and unexpected costs Unexpected expenses, such as medical bills, as well as savings, should be included in your budget.
• It's best to keep these accounts distinct. If you can avoid it, even in an emergency, don't dip into your savings.