Planning expenditure Flashcards
(3 cards)
1
Q
Whys it impotent to plan expenditure?
A
To avoid getting into financial difficulty’s such as.
- Debt
- Bankruptcy
- Good credit score
- Remain solvent
2
Q
Benafits of planning.
A
- A good credit score, means you will be able to borrow money for a car or mortgage.
- Money not spent on essentials can be saved and earn interest to generate an income.
- Savings can be used to fund purchases or be able to pay for unexpected expenses.
3
Q
Risks of not planning.
A
- Getting into debt because you cannot pay bills
- Having insufficient funds to pay loan repayments.
- Having legal action taken against you for non-payment of loans or loosing goods that you are unable to pay for.
- Poor credit rating, lowing chances of borrowing money.
- Not being able to save for the future.
