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choose one principle of personal finance and explai.​

Sagot :

Answer:

The Principle of Risk and Return indicates that investors have to conscious both risk and return, because higher the risk higher the rates of return and lower the risk, lower the rates of return. For business financing, we have to compare the return with risk.

Step-by-step explanation:

I hope it helps. :))

FINANCIAL BREAKTHROUGH BY SPENDING LESS MONEY THAN YOU MAKE

Answer:

Personal finance is concerned with achieving personal financial objectives, such as having enough money for short-term financial demands, budgeting for retirement, or investing for your child's college education. It all relies on your income, spending, living needs, and personal objectives and desires—as well as developing a strategy to meet those needs within your financial limits. To make the most of your money and savings, you need to become financially literate so you can tell the difference between good and bad advise and make wise decisions.

1. Spend less money than you make.

This is by far the most crucial principle. You can only be successful if your monthly revenue exceeds your monthly costs. Spending less than you earn allows you to save money for the future rather than living paycheck to paycheck or falling further into debt because you can't pay your expenses.

The Benefits of Spending Less

1. You begin repaying your debt

They gradually fade away, cutting your monthly expenses and giving you more flexible space with your money.

2. You begin to save.

First, you put some money aside in a savings account to meet unforeseen bills (like a car breakdown or a job loss). You'll also have more leeway to start saving for retirement, laying the groundwork for a wealthy future in your golden years.

3. Your stress level drops.

Knowing you have less costs, that your emergencies are covered, and that your retirement is planned for reduces stress. You sleep better, your overall health improves, and you have a happier view on life.

4. You can now look at possibilities that were previously closed to you.

When your bills were paid off and you are spending much less than you make, you will find yourself with a variety of fresh career opportunities for your money.

Everything simply comes down to one basic rule: spend less than you earn.

Spending less implies that you must cut back on your spending. The first move does not have to be severe – in fact, it should not be. Many of the more extreme money-saving tactics are developed by people who have tried the basic advice and found them to be helpful, so they seek for more aggressive ways to further lower their expenditure. I'm always experimenting with new money-saving strategies, discarding the ones that don't work and keeping the ones that do.

How to save money. ?​

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