What is the simplest change that can be made to the budget to produce more savings next month add to fixed expenses decrease food expenses reduce R?

The answer to the question is (B) decreases food expenses. Since the individual wants to reduce budget for a short period of time (within the next month) she should reduce his variable expenses – in which from the option is only decreasing food expenses.

How do you create a simple monthly budget?

How to Make a Budget in Six Simple Steps

1. Gather Your Financial Paperwork. Before you begin, gather up all your financial statements, including:
2. Calculate Your Income.
3. Create a List of Monthly Expenses.
4. Determine Fixed and Variable Expenses.
5. Total Your Monthly Income and Expenses.
6. Make Adjustments to Expenses.

How do you budget month to month?

How to Create a Monthly Budget in 6 Steps

1. TOTAL YOUR MONTHLY TAKE-HOME PAY.
2. ADD UP WHAT YOU SPEND ON FIXED EXPENSES.
3. ADD UP WHAT YOU SPEND ON NON-MONTHLY COSTS.
4. ADD UP CONTRIBUTIONS TO FINANCIAL GOALS.
5. ADD UP YOUR DISCRETIONARY SPENDING.
6. DO SOME SIMPLE MATH.

How do you create a balanced budget one must make sure?

To create a balanced budget, one must make sure to spend less than or equal to income. Explanation: A budget is about planning finance for specific period of time. The planning may include sales volumes and revenues, resource quantities, costs and expenses and cash flows.

How do you balance a business budget?

Here are six tips to help you balance your business budget in 2018:

1. Reassess last year’s budget.
2. Project your income sources.
3. Figure out your fixed costs.
4. Tally your variable costs.
5. Expect one-off expenses.
6. Keep reviewing your budget.

What should my budget be?

Ideally, you should budget about 7% of your take-home pay for household expenses, but you may need to budget as high as 10%, depending on where you live and how big your household is.

What are the two main purposes of a business budget?

anticipate sources and amounts of income for a business. 2. predict the types and amounts of expenses for a specific business activity or the entire business. provides many planning tool for new businesses.

Why do we need to prepare a budget?

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.

What are the three purposes of budgeting?

In the context of business management, the purpose of budgeting includes the following three aspects: A forecast of income and expenditure (and thereby profitability) A tool for decision making. A means to monitor business performance.

What is the purpose of a budget for a business?

A business budget is a spending plan for your business based on your income and expenses. It identifies your available capital, estimates your spending, and helps you predict revenue. A budget can help you plan your business activities and can act as a yardstick for setting up financial goals.

What are the major benefits of budget?

Benefits of a business budget

• manage your money effectively.
• allocate appropriate resources to projects.
• monitor performance.
• meet your objectives.
• improve decision-making.
• identify problems before they occur – such as the need to raise finance or cash flow difficulties.
• plan for the future.
• increase staff motivation.

Which is the last step in making a personal budget?

The last step in making a personal budget is to reduce expenses in flexible categories. The correct option among all the options given in the question is option “B”. Under normal circumstances, a person cannot make the adding up all sources of income as the last step. Then the expenses will not get added.

Can expenses exceed your income?

If your deductions exceed income earned and you had tax withheld from your paycheck, you might be entitled to a refund. A Net Operating Loss is when your deductions for the year are greater than your income in that same year. You can use your Net Operating Loss by deducting it from your income in another tax year.

What is an expense which stays relatively the same from month to month?

A routine expense is your rent or your car insurance. These are expenses that stay the same from month to month. This includes your rent, your gym membership, or your car insurance.

What type of expense is the same every month?

What Are Your Fixed Expenses? Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.

Are expenses that vary from month to month such as entertainment car repairs or doctor bills?

Variable expenses – Expenses that vary from month to month, such as entertainment, car repairs, or doctor bills.

What are some examples of fixed expenses?

Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.