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3 years ago

What is the reason it's better to underestimate your income instead of overestimating when creating your budget?

Business

1 answer:

Alik [6]3 years ago

6 0

Answer:

<em>Underestimating your income is a conservative and healthy measure that can avoid financial problems.</em>

Explanation:

<em>Underestimating</em> your <em>income</em> is a conservative and healthy measure, such as it is overestimating your expenses.

Specially when your income is variable iit can be hard to predict. You will be safer both if your income lowers or your unpredictable expenses increase.

There are many unpredictable situations that could put you in a difficult situation: a disease, a natural disaster, the need to help a family member or friend in trouble. If any of these unfortunate circumstances arises and your budget is too tight, you could see yourself in financial trouble.

But, if you if all is smooth you will have in a happy situation, you will have a surplus which can use for savings, for an important purchase, or for vacations.

It is better to be cautious than to regret later!

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What are three strategies that you can use to make better financial decisions?

Gnom [1K]

Investments, Savings, and Expenses are the three basic strategies, which can help a person take better and efficient financial decisions on a personal level.

<h3>What are better financial decisions?</h3>

The strategies to choose the investments in different assets and debt classes will enable a person to increase his chances of gaining better financial returns.

The amount of money, a person decides to save for any future requirements will help him out of the financial crises that may take place in his life.

The strategy on where to spend and where not to spend will help a person have more disposable income to fulfill the financial needs in the future.

Hence, the strategies for taking better financial decisions are as aforementioned.

Learn more about financial decision here:

brainly.com/question/19502030

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7 0

2 years ago

Which market segment should a no-frills hotel target?

Vera_Pavlovna [14]

Answer:

the answer would be d. I got it right on Plato

6 0

3 years ago

Ratio analysis:___________.

Mnenie [13.5K]

Answer:

D. Serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Explanation:

Ratio analysis serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Ratio analysis can be defined as the analysis of different pieces of financial information in the financial statements of a business.

Ratio analysis is used to get insight about the financial wellbeing of a business. It is used by analysts to determine various aspects of a business, such as its profitability, liquidity, and solvency.

7 0

3 years ago

Bond payments are generally more predictable than stocks because:_______.

lianna [129]

The bond payments are more predictable than stocks because bond owners know the size and timing of payments they will receive.

Bonds refers to the promise by a borrower to pay the lender his/her principal and the interest on the loan given.

Bonds is an instrument used by company as an alternatives to taking a loan from banks.

Generally, the bond payments are more predictable than stocks because bond owners know the size and timing of payments they will receive.

Therefore, the Option C is correct.