How to Make Decisions on Large Expenditures
When making a large expenditure, what should you consider?
When considering a significant expense that may involve recurring payments, there are several crucial factors to take into account:
1. Careful consideration of short-term goals
Short-term goals play a vital role in decision-making related to large expenditures. It is essential to evaluate whether the expense aligns with your current goals and priorities.
2. Creating a budget to consider future income and spending
Developing a detailed budget can help you understand how the expenditure will impact your financial health in the long run. By considering both your future income and expenses, you can make an informed decision.
3. Learning about opportunity cost
Opportunity cost refers to the benefits you could have received by choosing an alternative course of action. Understanding the opportunity cost of a large expenditure can help you weigh the potential benefits and drawbacks.
Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options. A. careful consideration of short-term goals C. creating a budget to consider future income and spending E. learning about opportunity cost