Question

If you want to increase the amount of monthly savings in your budget, which of the following methods would reasonably be most effective?
A) Keep "Essential Expenses (Fixed)" the same amount every time the budget is revised
B) Determine a "Non- Essential Expense", or any other expense, That can be reduced.
C) Pay bills as late as possible, in order to increase the amount of cash available.
D) Use only money from the emergency savings for unexpected expenses.
I chose leter A when it is letter B, however I don't know why it would be this. Does anybody know why?

Answer 1

You don't want to fixate essentials to a limited amount because it would limit the quality of those products

You would be much better off spending less on unnecessary things than limit the amount you need

Answer 2

Thanks!

Answer 3

\(\color{#0cbb34}{\text{Originally Posted by}}\) @dude
You don't want to fixate essentials to a limited amount because it would limit the quality of those products

You would be much better off spending less on unnecessary things than limit the amount you need
\(\color{#0cbb34}{\text{End of Quote}}\)

On top of this, A would impede you from getting good deals. For example, say you normally buy $10 worth of potatoes each month at Costco. But when March rolls around, you notice that there's a special offer for $20 in which you would get 4x the amount of potatoes. A wouldn't allow you to take advantage of this offer, and save money.

Answer 4

Thanks!

Answer 5

No problem