Question

Mario just got his first job. He is earning a good salary, but he does not have any savings yet. As a savings strategy, Mario should _____.

a. try to spend as little as possible each month, then save what is left over
b. pay his bills and spend some on entertainment each month, and save what is left over
c. save a portion of his income when he first gets paid, then spend the rest on bills and entertainment
d. put most of his income each month into savings, and then try to spend as little as possible

Answer 1

(d) Mario should put most of his income each month into savings, and then try to spend as little as possible.......

Answer 2

The most relevant answer is option D.

Explanation:

Mario just got his first job. He is earning a good salary, but he does not have any savings yet. As a savings strategy, Mario should - put most of his income each month into savings, and then try to spend as little as possible.

Option A cannot be feasible, as first we have to put aside money for savings, and then use the rest for expenses. Here its given in the wrong order, to spend first and save later.

Option B is also a wrong approach for savings. Option C is in the correct order but expenses are not only bills and entertainment. It also includes, food, housing, rent, medical facilities, transportation etc.

So, only option D is left and it best fits the answer.