When Creating a Budget, It Is Important to

question 48

Multiple Choice

When creating a budget, it is important to

• A) Save the amount you have left at the end of the month.
• B) Set aside savings after your variable expenses are paid.
• C) Save an amount no more than 3% of your annual income in an emergency fund.
• D) Spend the amount of money you have budgeted in each category.
• E) "Pay yourself first" by setting aside savings before other expenses are budgeted.

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Definitions:

Thomas Kuhn

A philosopher of science best known for his theory on the structure of scientific revolutions and the concept of paradigm shifts.

Truth

The state or quality of being in accordance with fact or reality, often considered as an objective concept in philosophy.

Harm

Physical injury or damage caused to something or someone, often a result of accidents, negligence, or intentional actions.

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