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Q.1
Mistakes people make when budgeting include;
Forgetting about larger, one-time purchases or future priorities
Underestimating small, regular expenses
Not building in a cushion or margin for error
Not distinguishing between needs and wants
All of the above
Q.2
Most people have a clear idea of how much they spend in a given year
True
False
Q.3
It is not necessary for high income earners to monitor their spending
True
False
Q.4
It is difficult to know what you and your family spend in a given year unless you track it
True
False
Q.5
The 50/30/20 rule of budgeting supported by many financial professionals means allocating your spending as follows;
50% to repaying debts & savings, 30% to needs, 20% to wants
50% to needs, 30% to wants, 20% to repaying debts & savings
50% to wants, 30% to needs, 20% to repaying debts & savings
Q.6
Studies show you will be happier if your spending is aligned with your values and priorities
True
False
Q.7
It is easy to predict someone's annual income from their spending habits and patterns
True
False
Q.8
The best planning and budgeting method/process to use is the one that works for you
True
False
Q.9
The type, nature and amount of a person's expenses can change with time and age
True
False
Q.10
The more variable your income is, the greater your emergency fund should be
True
False
Q.11
The higher your level of debt, the more flexibility you have with your spending
True
False
Q.12
The term "lifestyle inflation" means;
increasing your spending when your income increases
ensuring your spending rises less than inflation
ensuring your income rises faster than inflation
Q.13
Often, banks require your monthly mortgage payment to be less than __% of your gross monthly income
20%
30%
40%
Q.14
Studies show that people get more happiness from spending on material possessions than on experiences
True
False
Q.15
The earlier you develop wise spending habits, the more likely you are to build greater wealth
True
False
Q.16
Buying the largest house you can afford is always the best decision
True
False
Q.17
Ways to better control your spending include;
1. Using your credit card (rather than cash) more often
2. Sticking to a shopping list or staying out of the stores
3. Establishing self imposed spending limits or taking time to evaluate major purchases
4. #2 & #3
5. All of the above
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