Question

Etta wants to make a monthly budget. What should she do first?

Calculate her net income

Decide how much she wants to spend

Open a savings account

Pay her bills

Answer 1

Calculate her net income.

Step-by-step explanation:

The net income is the money left after the expenses has been deducted. So, if Ette wants to make a monthly budget, the first thing she needs to do is to calculate her net income to have a clear view of the monthly earnings she has, her expenses and if her salary is enough those expenses. From this analysis, she can proceed to create an accurate budget.

Answer 2

When developing a monthly budget, the first thing to do is calculate your net income. Etta needs to calculate her net income, so she can budget everything based off of the money she brings in. After she sets up her net income, she can pay her standard monthly bills, then decide how much she wants to spend on different areas of her life and then, open a savings. It is important to know how much money you have to work with before budgeting because if you don't, the budget may not be realistic.