Mastering Budgeting Techniques

What percentage of annual income is typically spent on necessary expenditures?

• About 80%

• About 50%

• About 60%

• About 70%

What should your budget be based on?

• Gross income

• Net income

• Hourly wage

• Annual salary

What type of expenses are considered fixed?

• Dining out and hobbies

• Clothing and entertainment

• Utilities and groceries

• Rent and car payments

What is the first step in creating a budget?

• Review past spending

• Know your income

• Set financial goals

• Determine your expenses

Which category should a new gadget be classified under in a budget?

• Fixed expenses

• Necessary expenses

• Like to have

• Variable expenses

What should you do if you find unnecessary expenses in your budget?

• Increase them

• Shift them to fixed expenses

• Eliminate or reduce them

• Ignore them

What is a recommended method to track your expenses?

• Guessing

• Mental notes

• Budgeting apps

• Asking friends

How often should you review your budget to ensure it's effective?

• Weekly

• Yearly

• Daily

• Monthly

What is an essential tool mentioned for budget tracking?

• All of the above

• Budgeting apps

• Physical ledger

• Online banking

What can a well-maintained budget help you achieve?

• Elimination of all expenses

• A higher credit score

• Unlimited spending

• Less stress over bills