Question

Write a paragraph that explains the most important principles to keep in mind when creating a budget. Describe at least three important principles in your answer.

Answer 1

When creating a budget you want to remember your income level and what you can afford. If you only make 200$ every week you don't want out budget to be 200$ cause you won't have anything for savings. You also want to keep in mind your wants verses needs. the last thing you want to keep in mind is whatever your buying is it worth spending money on i.e. good quality, last you while, etc.

Answer 2

Sample Response: It all starts by setting clear goals. You need to know what you want to accomplish in the short term and the long term. Then, you can examine your goals to find your needs and wants. You can accomplish these needs and wants by categorizing your expenses into fixed and variable categories. By keeping all of these principles in mind, you will be able to balance your budget. This will allow you to save money while also spending enough to meet your goals.

This is the sample from Ed gen uity ! Put it in your own words before submitting :)