When determining the income value to use for budgeting purposes, Iris can consider different approaches based on her specific financial goals and circumstances. Here are a few options:
1. Average Income: Iris can calculate the average of her monthly income over the last four months. To do this, she adds up the total income ($2,700 + $4,600 + $3,550 + $1,700 = $12,550) and divides it by the number of months (4). The average monthly income in this case would be $12,550 / 4 = $3,137.50. Iris can use this average value as a baseline for budgeting.
2. Conservative Approach: If Iris wants to play it safe and be conservative in her budgeting, she can consider using the lowest income value she earned in the past four months, which is $1,700. This approach ensures that she plans her budget based on a more conservative estimate of her income.
3. Recent Income: If Iris wants to focus on her most recent earnings, she can use the income value from the last month, which is $1,700. This approach may be suitable if she anticipates a similar income trend or wants to prioritize her most recent financial situation.
Ultimately, the best income value for Iris to use when making her budget depends on her personal preferences, financial goals, and the level of risk she is comfortable with. It may also be helpful for her to consider any expected changes in her income or expenses in the near future.