which of the following is a feature of a good budget
A feature of a good budget typically includes:
1. Realistic: A good budget should be based on realistic income and expenses. It should not rely on assumptions or wishful thinking.
2. Specific: The budget should include specific categories for income and expenses, such as rent/mortgage, utilities, groceries, transportation, entertainment, etc. This helps provide clarity and accountability.
3. Comprehensive: A good budget covers all aspects of a person's financial life, including saving for emergencies, debt repayments, retirement contributions, and other financial goals.
4. Flexible: A good budget should be adaptable to changing circumstances and unexpected expenses. It should allow for adjustments and tweaks as needed.
5. Balanced: The budget should aim to maintain a balance between income and expenses, ensuring that spending does not exceed earnings.
6. Focused on goals: A good budget should align with a person's financial goals. It should prioritize savings and debt reduction to help achieve long-term objectives.
7. Monitored and reviewed: Regularly monitoring and reviewing the budget is crucial for its effectiveness. Tracking expenses and comparing them to the budgeted amounts helps identify areas for improvement and allows for necessary adjustments.
Remember that these are general features, and the specific needs and preferences of an individual may vary.