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28 August, 16:47

Why is it better to underestimate your income instead of overestimating when creating a budget?

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  1. 28 August, 18:30
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    Answer: It is better to underestimate you income because it allows you to save more money. If you overestimate your income, you have a higher chance of spending all the money that you earn.

    Explanation:

    For example if you have 20 dollars but think you have 10, then you only spend 10 dollars and save 10. If you over estimate and think you have more than 20, then you spend all the money that you had.
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