What strategy can help spenders maintain financial health

Subject : Business

Question: What strategy can help spenders maintain financial health?

Select an answer from the options below:

A. Relying solely on credit cards for purchases.

B. Avoiding any form of budgeting.

C. Adopting budgeting practices.

D. Spending more time analyzing investment opportunities.

Expert Verified Solution:

The correct answer is:

C. Adopting budgeting practices.

Explanation:

Adopting budgeting practices is a fundamental strategy for maintaining financial health. By creating and sticking to a budget, individuals can better manage their income and expenses, save for future goals, and avoid overspending.

In contrast:

A. Relying solely on credit cards for purchases: This can lead to high-interest charges and debt accumulation, negatively impacting financial health.

B. Avoiding any form of budgeting: Avoiding budgeting can result in poor financial management and difficulties in tracking and controlling spending.

D. Spending more time analyzing investment opportunities: While important for growing wealth, focusing solely on investments without a budget can lead to imbalanced financial management.