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The 50/30/20 rule describes how much a person should be budgeting for their needs, wants, and savings. Which of the following expenses is a need according to the 50/30/20 rule? Choose 1 answer: A travel fund B gym membership (B) C cable TV subscription D rent or mortgage

Question

The 50/30/20 rule describes how much a person should be budgeting for
their needs, wants, and savings.
Which of the following expenses is a need according to the 50/30/20
rule?
Choose 1 answer:
A travel fund
B gym membership (B)
C cable TV subscription
D rent or mortgage

The 50/30/20 rule describes how much a person should be budgeting for their needs, wants, and savings. Which of the following expenses is a need according to the 50/30/20 rule? Choose 1 answer: A travel fund B gym membership (B) C cable TV subscription D rent or mortgage

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ReubenMaster · Tutor for 5 years

Answer

### (D) rent or mortgage

Explain

## Step 1: Understand the 50/30/20 rule<br />### The \(50/30/20\) rule is a budgeting guideline stating that 50% of income should go towards needs, 30% towards wants, and 20% towards savings.<br />## Step 2: Categorize the expenses<br />### Identify which category (needs, wants, or savings) each option falls into:<br />- Travel fund is a want.<br />- Gym membership is a want.<br />- Cable TV subscription is a want.<br />- Rent or mortgage is a need.
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