The breakdown of average monthly expenditure for a family is given in the following Figure:
(A). Calculate from the figure what percentage of the family’s expenditure is on ‘other ’?
The percentage of the family’s expenditure on ‘other’ is 100 – 40 – 20 – 20 – 10 = 10%.
(B). Approximately what fraction of the family’s monthly expenditure do’ ‘utilities’, ‘rent’ and ‘food’ represent?
The fraction of the family’s monthly expenditure that ‘utilities’, ‘rent’ and ‘food’ represent is 40/100 + 20/100 + 20/100 = 80/100 = 4/5.
(C). If the family spends Rs.11600 on utilities, how much is the family’s total expenditure?
If the family spends Rs.11600 on utilities, the family’s total expenditure is 11600 / 40 * 100 = Rs. 29,000.
(D).‘Other’ expenditure comprises savings, entertainment and luxury items, which are spent in the ratio 3 : 4 : 1. Calculate how much the family saves each month if monthly income is Rs.24,000.
The family saves Rs. 24,000 * 3 / 8 = Rs. 9,000 each month.
(E). Write a 1000-word essay on the importance of budgeting and saving money.
Budgeting and saving money are two of the most important things that you can do to improve your financial situation. Budgeting allows you to track your income and expenses so that you can make sure that you are not spending more money than you are making. Saving money allows you to build up a financial cushion so that you can cover unexpected expenses or reach your financial goals.
There are many different ways to budget and save money. One popular method is the 50/30/20 rule, which says that you should allocate 50% of your income to needs, 30% to wants, and 20% to savings. Another popular method is the envelope system, in which you divide your monthly income into different categories and then put cash into envelopes for each category.
No matter which method you choose, the most important thing is to be consistent and to stick to your budget. It can also be helpful to set financial goals, such as saving up for a down payment on a house or retirement.
Budgeting and saving money can seem daunting at first, but it is definitely worth it in the long run. By taking control of your finances, you can improve your financial situation and reach your financial goals.