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Personal Finance Courses: Budgeting

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1.
Budgeting software can provide financial forecasts for your financial data.
Choose wisely. There is only one correct answer.
True. Not all software offers this, however. The ones that do are more advanced and pricey.
2.
If your expenses exceed your income in your budget, you may need to revise what you spend your money on, and how much you spend.
Choose wisely. There is only one correct answer.
True. You could also earn more money, but it may be easier to change your spending habits.
3.
Financial advisers often talk about "paying yourself first" out of your income. Where do they suggest that you put this money that you pay yourself?
Choose wisely. There is only one correct answer.
Into a savings plan. The idea behind paying yourself first is to put part of every paycheck into savings.
4.
Having mostly fixed expenses instead of variable expenses will keep your expenses low.
Choose wisely. There is only one correct answer.
False. Fixed expenses often can be for your most expensive needs or wants. The way to keep fixed expenses lower is to buy what you need rather than what you want.
5.
If you spend more than the net income you make in a month, you will have to _________.
Choose wisely. There is only one correct answer.
Any of the above. The money has to come from somewhere. Dipping in to your savings account steals money you have allocated for other financial goals. Borrowing by buying products using a credit card gets you off the hook from being short for the month but causes you to go into debt and carry a loan balance at a very expensive interest rate. Being late on a bill is never a good idea and can affect your credit score.