Question

Which of the following statements describes a part of a reasonable method for increasing the amount of savings in the budget?
a.
Keep “Essential Expenses (Fixed)” the same amount every time the budget is revised.
b.
Occasionally pay a bill later than due, in order to increase available cash.
c.
Find a way to reduce “Non-Essential Expenses” in the monthly budget.
d.
Use only money from the coin jar towards “rainy day” expenses.

Answer 1

c. Find a way to reduce “Non-Essential Expenses” in the monthly budget.

Reducing discretionary spending is a practical way to free up money to increase savings. The other choices either don't reliably increase savings or can cause problems (late payments, relying only on small change).