Which of the following can help you to achieve your financial goals?

• A. Ignoring your spending habits
• B. Creating and following a budget
• C. Making financial decisions without any planning
• D. Avoiding all forms of saving

Answer: (B)

Verified step by step guidance

1. Understand the concept of financial goals: Financial goals are specific objectives you aim to achieve with your money, such as saving for a house, paying off debt, or building an emergency fund.
2. Recognize the importance of budgeting: A budget is a financial plan that helps you allocate your income towards expenses, savings, and investments. It ensures you are living within your means and working towards your goals.
3. Evaluate the options provided: Ignoring spending habits, making decisions without planning, and avoiding saving are counterproductive to achieving financial goals. These actions lead to poor financial management.
4. Identify the correct approach: Creating and following a budget is a proactive step that allows you to track your income and expenses, prioritize savings, and make informed financial decisions.
5. Apply this knowledge: To achieve your financial goals, start by creating a realistic budget, monitor your spending habits, plan your financial decisions carefully, and incorporate saving as a regular practice.