Why might a personal budget include information on BOTH spending AND saving habits? A) People need to learn how to spend more money instead of saving it. B) By knowing how much they spend, people can look for ways to save more. C) Spending and saving habits cannot be changed, so people have to earn more. D) A personal budget shows people how to spend more money on items they want.
Answers
Once you create your first budget, begin to use it and get a good feel for how it can keep your finances on track, you may want to map out your spending plan or budget for 6 months to a year down the road. By doing this you can easily forecast which months your finances may be tight and which ones you'll have extra money. You can then look for ways to even out the highs and lows in your finances so that things can be more manageable and pleasant.
Extending your budget out into the future also allows you to forecast how much money you will be able to save for important things like your vacation, a new vehicle, your first home or home renovations, an emergency savings account or your retirement. Using a realistic budget to forecast your spending for the year can really help you with your long term financial planning. You can then make realistic assumptions about your annual income and expense and plan for long term financial goals like starting your own business, buying an investment or recreation property or retiring.
Answer:
Answer is option B.
Explanation:
A Budget is an estimate of how much money will be received as income and how much of it will be spend as expenditure, over a specific period of time. Then, by comparing the actual income and expenditure with the budget, one will know how to increase income and to save more.
Decisions based on patterns and trends in income and expenditure, helps to increase income and decrease unnecessary expenditure.