Question

When creating a budget, which of the following statements is true?

a. Plan on your income being the same as last year
b. It is easier to create a budget if your earnings vary
c. Common financial problems can be maximized through budgeting
d. Numbers in the budget are estimates
e. It is better to overestimate your income for next year

Answer 1

When creating a budget, numbers in the budget are estimates.

Step-by-step explanation:

The correct statement when creating a budget is that numbers in the budget are estimates.

When creating a budget, you are estimating your income and expenses based on past data and projections for the future.

It is important to understand that these numbers are not set in stone and can change. Flexibility is key when creating a budget as unexpected expenses or changes in income can occur.

For example, if you estimate your monthly income to be $2000 but end up earning $2500, you can adjust your budget accordingly.

It's always better to be prepared for unexpected changes by having a flexible budget.