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1.
In a budget, the key to successful economizing is _______.
Setting goals and prioritizing them. The key to successful economizing is setting goals and prioritizing them.
2.
You can find out where you are spending money needlessly by _______.
Tracking your spending for a while. The value of tracking your spending is that you become aware of every expense you make.
3.
To pay yourself first means to _______.
Set aside money right away out of your paycheck. The idea is that your savings come first.
4.
An advantage of keeping money in a tax-deferred retirement plan is that you might pay lower taxes on the money when you eventually take it out. This is because _______.
You may be in a lower tax bracket in retirement. Most retirees take in less income in retirement, which typically puts them into a lower tax bracket. This is not a given for everyone, though.
5.
A good budget can sometimes allow a months expenses to exceed that months income.
True. A good budget is always balanced, even if some months expenses exceed income, as long as there are adequate inflows from past or future savings.