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Blababa [14]
3 years ago
10

What is included in a personal budget? Why is a personal budget a useful tool?

History
1 answer:
WITCHER [35]3 years ago
7 0

Answer:

A personal budget is the expenses incurred in your everyday life. Gas in your car, Insurance, Electricity, Water you get the picture. You should be counting every dollar that goes toward paying for necessities first to determine your annual expenses.

It’s useful so that you do not spend more than you earn. Which is the fastest way to going into debt. Debt is where you owe more than you have to pay with. That only leads to more debt whereby people then borrow money to pay others. It’s a vicious circle and one you should steer away from. Just ask yourself this before you buy something. Do I need it or is this something I want? If it’s a need then buy it as it should be in your budget. If it’s a want don’t tell yourself “I can’t afford it” as yourself “how can I afford it”?

Hope this helps and all the best

Explanation:

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