1. Fixed expenses such as rent/mortgage payments, utilities, and insurance premiums. It is important to prioritize these expenses as they are essential for maintaining a comfortable lifestyle and meeting basic needs.
2. Variable expenses such as groceries, transportation, and entertainment. These expenses can vary from month to month, so it is important for Katy to track them closely and adjust her budget accordingly.
3. Savings and debt repayment. Setting aside a portion of income for savings and debt repayment is crucial for achieving financial goals and building a secure future. This component should not be overlooked in Katy's monthly budget.
After understanding the importance of budgeting, identify THREE essential components that Katy should include in her monthly budget. – 3 marks
1 answer
1 answer