Question

creating a monthly budget (part 4)

• includes the following steps:
• adjusting expenses
• ideally, the income column would be greater than the expense column, and can be made to the expenses column to add payments to pay off debt or create a savings plan
• if the expenses column is greater than the income column, expenses will need to be adjusted
• flexible (variable) expenses are the first place to look when making adjustments since these expenses are typically
• for example, decreasing the number of times a person eats out in a month or rents a movie rather than going to the movie theater
• the budget
• should be done regularly to stay on point
• after creating the and identifying areas where adjustments to expenses can be made, begin to compare actual expenses versus what had been estimated in the budget
• this can show where a person may need to as well as areas in which they are doing well

adjustments non - essential improve reviewing initial budget higher

Explanation:

1. When income > expenses, adjustments can be made to expenses to pay debt or save.
2. When expenses > income, expenses need adjusting. Flexible expenses are first - target as they are non - essential.
3. Reviewing the budget regularly is key. After creating the initial budget, compare actual vs estimated expenses to see where to improve.

Answer:

1. adjustments
2. non - essential
3. reviewing
4. initial budget
5. improve