Question

If you want to increase the amount of monthly savings in your budget, which of the following methods would reasonably be the 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.

Answer 1

Answer: b.

Reducing a non‑essential (or any reducible) expense frees up cash you can redirect into savings. The other choices either don’t increase savings (a), create extra costs and risk (c), or deplete emergency funds (d).