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Mamont248 [21]
4 years ago
14

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

Business
1 answer:
Alik [6]4 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!

You might be interested in
4. What is Relationship Analysis? 5. How does the Analogy technique work to create new concepts?
attashe74 [19]

Answer:

4. Relationship analysis, often referred to as customer relationship analytics, is known as the processing of information and data about their customers and the relationship that is established with the organization or enterprise , this is done in order to generate more sales and service also to lower the cost.

5. The principle or base of the Analogy technique is mostly grounded on identifying the typical factors and features of concerning problem, and thus finding situations, objects, or the places that also tends to have these same features; and therefore using them as the mental stimuli in order to solve the concerning problem.

7 0
3 years ago
Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. What is the real interest rate? %
V125BC [204]

Answer:

(A) real rate of return 2$

(B) inflation premium 5%

Explanation:

The Inflation premium is an additional return over the rate of return. His goal is to compensate the loss of value in their capital due to inflation.

nominal rate = rate of return + inflation premium

(A)

nominal interest rate = 4%

inflation premium = 2%

nominal rate - inflation premium = real interest rate

4% -2% = reail interest rate = 2%

(B)

nominal interest rate = 6%

real interest rate = 1%

nominal rate - inflation premium = real interest rate

6% - inflation premium = 1%

inflation premium = 6% - 1% = 5%

4 0
3 years ago
You would like to know whether silicon will float in mercury and you know that can determine this based on their densities. unfo
kogti [31]
The answer is 1000

Density formula is weight/volume, so the unit should be gram/centimeter^3. To  convert gram/centimeter^3 into kilogram/meter^3, the <span>conversion factors would be:
</span>(gram/centimeter^3) / (kilogram/meter^3)
= (gram/kilogram) /(centimeter^3/meter^3)
<span>= (gram/ 1000gram) / (centimeter^3/ 100^3 centimeter^3)
= (1/1000) / (1 / 100^3)
= 1,000,000/1000= 1,000</span>
6 0
3 years ago
Read 2 more answers
"A customer makes an investment in a CMO. In a given year, she receives $24,000 of payments, of which $6,000 is principal and $1
ASHA 777 [7]

Answer:

Only the interest amount received is taxable.

Explanation:

CMO refers to Collateralised Mortgage Operation in this whenever one receives a payment it is joint of some principal and remaining amount as an interest.

The principal received only decreases the debt, that is created in a CMO. Thus, is not to be considered as an income in any manner.

Interest received is a part of income as do not decrease the liability of debt, rather increases the revenue, and is therefore, taxable.

8 0
3 years ago
Luma Inc. has provided the following data concerning one of the products in its standard cost system.InputsStandard Quantity or
Serggg [28]

Answer: $69 U

Explanation:

Firstly, based on the information given, we need to calculate the standard usage which will be:

= Actual output × Standard Qty/hours per unit

= 2100 x 4.8

= 10,080

Therefore, the raw material quantity variance will be:

Raw material usage in production = 10,090 ounces

Standard usage = 10,080

Standard Price = $6.90

Then, the raw material quantity variance will be:

= (Actual usage in units - Standard usage in units) x Standard cost per unit

= (10,090 - 10,080) x 6.9

= 69621 - 69552

= 69U

7 0
3 years ago
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