Budgeting is an important tool for saving. First, you need to segregate all…
2018
Budgeting is an important tool for saving. First, you need to segregate all your income and expenses.
Then categorise your expenses as least important, important and very important so that you can prioritise them while settling them through your limited income.
Try to figure out ways in which you can curtail expenses.
Make sure that your income is greater than your expenses by as wide a margin as possible.
The surplus fund after meeting all expenses becomes your saving. Only after savings are assured should you think about investment.
Which of the following is the correct chronology of steps inferred from the passage?
- A.
Saving-Budgeting-Investment
- B.
Investment-Budgeting-Saving
- C.
Budgeting-Saving-Investment
- D.
Budgeting-Investment-Saving
- E.
None of the Above
Attempted by 2 students.
Show answer & explanation
Correct answer: C
The paragraph first explains budgeting, then the surplus after expenses becomes saving, and only after savings should one think about investment. The correct chronology is Budgeting-Saving-Investment.