Question

Which of the following statements describes a part of a reasonable method for increasing the amount of savings in the budget

. a.Keep “Essential Expenses (Fixed)” the same amount every time the budget is revised.

b
.Occasionally pay a bill later than due, in order to increase available cash. c.Find a way to reduce “Non-Essential Expenses” in the monthly budget. d. Use only money from the coin jar towards “rainy day” expenses.

Answer 1

The best way to increase saving is to either have higher gains or to decrease spending.

Among the options given the best one is: c.Find a way to reduce “Non-Essential Expenses” in the monthly budget.

Answer 2

I believe the answer is: c.Find a way to reduce “Non-Essential Expenses” in the monthly budget.

Increasing the amount of saving would reduce the amount of money that available for your overall consumption. In order to do this, you need to start identifying which consumption that are crucial and cannot be eliminated and which consumption are not-crucial and can be allocated into saving.