Question

Put in order the steps

Debbie wants to plan a monthly budget for her family. Sequence the steps that Debbie needs to take for preparing her personal budget


categorize the expenses into those that

could be avoided and those that are not

avoidable (like mortgage payments)


write down all the expenses that the

family incurs for the month

cut down on the expenses that have been


identified as avoidable

translate the monthly budget into a yearly

budget to achieve long term goals


invest a small part of the money saved in

something that could help the money

increase in value

Answer 1

1) write down all the expenses that the family incurs for the month

2) categorize the expenses into those that could be avoided and those that are not avoidable (like mortgage payments)

3) cut down on the expenses that have been identified as avoidable

4) invest a small part of the money saved in something that could help the money increase in value

5) translate the monthly budget into a yearly budget to achieve long term goals

Explanation:

Just took the test, good luck everyone!

Answer 2

-write down all the expenses that the family incurs for the month

- categorize the expenses into those that could be avoided and those that are not avoidable (like mortgage payments)

- cut down on the expenses that have been identified as avoidable

- invest a small part of the money saved in something that could help the money increase in value

- translate the monthly budget into a yearly budget to achieve long term goals

Explanation:

Budgeting is the process by which revenues and expenses are estimated over a period of time.

Budgets are are usually reviewed occasionally to meet current needs.

The aim of budgeting is to allocate sufficient funds to meet set goals and to reduce waste.

The process of budgeting will involve enumerating expenses, identifying avoidable expense, cutting down avoidable expense, investing funds saved, and translate monthly to yearly budget in order to achieve long term goals.