Question

Leo’s car broke down, and he must find money in his limited budget to pay the repair bill. which of the following is the best solution for leo to handle the unplanned spending?

a.leo forgoes going out to dinner.
b.leo forgoes paying the rent on his apartment.
c.leo forgoes paying his water bill.
d.leo forgoes paying his electricity bill.

Answer 1

The best solution for Leo to manage the unplanned car repair costs is to cut back on non-essential spending, such as dining out, rather than skipping payments for essential services like rent or utilities.

Step-by-step explanation:

To handle the unplanned spending due to his car breakdown, Leo should prioritize his expenses. The best solution for Leo in this scenario would be to forego going out to dinner (option A). This is a discretionary expense and can be eliminated without affecting his basic needs or incurring additional costs. On the contrary, forgoing rent (option B), water bill (option C), or electricity bill (option D) can result in serious consequences such as eviction or disruption of vital services.

Creating and sticking to a budget is crucial to ensure that you can cover all your monthly expenses. In the event of unexpected expenses, it is essential to adjust the budget by reducing non-essential spending rather than foregoing essential payments like rent and utilities. Therefore, by cutting back on luxury items such as dining out, Leo can redirect that portion of his budget to cover the unforeseen car repairs.

Answer 2

Leo’s car broke down, and he must find money in his limited budget to pay the repair bill. The best solution for Leo to handle the unplanned spending would be to forgo going out to dinner.

The best solution for Leo to handle the unplanned spending would depend on his priorities and the urgency of the situation. However, it's generally not advisable to forgo paying essential bills like rent, water, or electricity, as these are basic necessities.

In this scenario, option (a) "Leo forgoes going out to dinner" seems like a more reasonable choice. Going out to dinner is a discretionary expense and can be temporarily sacrificed to allocate funds for the car repair bill. This way, Leo can manage his budget without compromising on essential needs like housing, water, or electricity.