Which of the following information is needed when creating an effective budget?(1 point)
Responses
gross income, variable income, fixed income, and savings
gross income, variable income, fixed income, and savings
gross income, variable expenses, fixed expenses, and savings
gross income, variable expenses, fixed expenses, and savings
net income, variable expenses, fixed expenses, and savings
net income, variable expenses, fixed expenses, and savings
net income, variable income, fixed income, and savings
The correct answer is: net income, variable expenses, fixed expenses, and savings.
The correct answer is:
net income, variable expenses, fixed expenses, and savings.
When creating an effective budget, it is important to consider the following information:
1. Gross income: This is the total amount of income you earn before any deductions, such as taxes or contributions to retirement accounts.
2. Variable income: Income that varies from month to month, such as commissions, bonuses, or freelance work. It's important to consider this variability when planning your budget.
3. Fixed income: Income that remains the same every month, such as a salary or regular dividends. This income is reliable and can help you plan your budget more effectively.
4. Savings: The amount of money you plan to set aside for future goals or emergencies. Saving should be a consistent part of your budget to help build financial security.
In the given options, the correct response is "gross income, variable expenses, fixed expenses, and savings".